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Iran and Russia Commit USD 38 Billion to Boost Eurasian Trade Corridor

Iran and Russia Commit USD 38 Billion to Boost Eurasian Trade Corridor
photo: RAILTARGET Archive/Iran and Russia Commit USD 38 Billion to Boost Eurasian Trade Corridor
01 / 11 / 2023

Iran and Russia have signaled their commitment to bolstering the International North-South Transport Corridor (INSTC), with a proposed joint investment of about USD 38 billion. This announcement was made during the international conference titled “The North-South Corridor; a New Concept” held in Astrakhan, Russia.

Dariush Jamali, the Iranian director of the Russian Port of Solyanka, emphasized the importance of the corridor as an integral part of the Eurasian transport network. During this conference, Jamali laid out the distinct routes of the INSTC, mentioning Iran and Russia's contribution to the development of the corridor. It was noted that Russia would own 35% of the shares, with Iran holding 34%.

Key measures being undertaken to enhance the INSTC include the Islamic Republic of Iran Shipping Line's (IRISL) significant investment in assets, such as 30 rail wagons, 5,400 containers, and the procurement of 21 equipped vessels to reinforce the maritime routes. Additionally, the IRISL Group has allocated funds to bolster the infrastructure and increase the capacity of Russia’s Solyanka Port. This move underscores the strategic importance of the port, further enhancing the INSTC's potential.

The INSTC project, initiated in 2002, encompasses a collaborative effort between Iran, Russia, and India. This ambitious transportation system spans 4,500 miles, cutting across at least six Eurasian countries and promising benefits to seven others. The ultimate objective of this collaborative venture is to revolutionize global trade, aiming to reduce travel costs by up to one-third and shipping time by nearly half. This endeavor, once realized, promises to be a significant commercial link between Asia and Europe.

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