Iran Seeks Russian Support For North-South Corridor Project


(MENAFN- AzerNews) Nazrin Abdul Read more

Iran expects Russia to provide substantial support for the International North-South Corridor, Azernews reports citing foreign media.

The Minister of Economic Affairs and Finance of Iran, Abdulnasir Hemmati, made this statement during a meeting with Igor Levitin, assistant to the Russian President, in Tehran today.

Hemmati noted that the imminent activation of the International North-South Corridor as a key transit route could strengthen cooperation between Iran, Russia, India, and countries around the Persian Gulf.

He added that Iran supports foreign investment in the corridor's development and is prepared to facilitate participation by offering special investment incentives for projects like the Rasht-Astara railway.

"We hope to see an increase in Russian investments in Iran, particularly in oil, logistics, and transit projects," Hemmati said.

During the meeting, Igor Levitin confirmed that Russia has allocated a budget for the construction of the Rasht-Astara railway. This railway is expected to handle 15 million tons of cargo, with the potential to increase capacity to 30-50 million tons.

Levitin emphasized that Russia aims to expedite the International North-South Corridor project. Following instructions from the Russian President, the project is underway, with VTB Bank of Russia overseeing the work.

"The first part of the North-South Corridor project, the Rasht-Astara railway, has completed technical works and is now entering the construction phase with the Ministry of Economy's coordination," he said.

It is noteworthy that on May 17, 2023, Russia and Iran signed an agreement for the Rasht-Astara railway construction in Gilan province, northern Iran. The 163 km railway line will include 9 stations. Upon completion, the railway will enhance the North-South Corridor and connect Iran's railway network to the Caucasus, Russia, and Northern Europe. The construction is expected to cost 1.6 billion euros and be completed within 48 months.

The North-South Corridor was established based on an intergovernmental agreement signed by Russia, Iran, and India on September 12, 2000. The corridor aims to reduce the delivery time of goods from India to Russia and Northern and Western Europe from over 6 weeks to approximately 3 weeks.

The Qazvin-Rasht railway (175 km) was inaugurated on March 6, 2019, connecting Azerbaijani railways with Iran's network within the corridor. The Rasht-Astara railway will be constructed within Iran.

The North-South Corridor has three directions within Iran: the eastern route to Turkmenistan and Central Asian countries, the central route to Russia and other countries via the Caspian Sea, and the western route to Azerbaijan, Georgia, Russia, and Eastern Europe.

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AzerNews

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