Moscow continues to successfully circumvent Western sanctions by developing new routes for trade with the global South. One such project will be the North-South International Transport Corridor: a railway through Iran will complete Russia’s final U-turn from the West, The New York Times reports.
Construction is due to begin this year. The $1.7 billion project will be the last link in the route between Russia and Iranian ports in the Persian Gulf, giving it easy access to trade centers such as Mumbai. According to the publication, the North-South ITC will be a critical factor in securing and accelerating the flow of imports into Russia, and will also greatly facilitate the export of Russian natural resources that are critical to the country’s economy.
Moreover, the corridor will complement Russia’s trade routes towards China and India, which are currently its largest trading partners. Notably, Russia’s trade with both countries exceeded its pre-war trade with the EU in 2023.
The new railway will connect the tracks between Iran and Azerbaijan in the north and then to the Russian railway network. Once completed – expected in 2028 – the transport corridor will stretch 7,200 kilometers and will be outside the scope of Western sanctions, the NYT writes. From Iranian points on the Persian Gulf coast, Russian traders will be able to easily access India, as well as Saudi Arabia, the UAE, Pakistan and other countries.