Iran, Russia sign deal on construction of strategic Rasht-Astara railway

Iran and Russia have signed an agreement on the construction of the Rasht-Astara railway, a strategic transport corridor that connects the existing railways of the two countries and Azerbaijan.

Iranian transport minister Mehrdad Bazrpash and his Russian counterpart Vitaly Savelyev put their signatures on the deal worth $1.6 billion during a ceremony in Tehran on Wednesday.

Iran’s President Ebrahim Raeisi and his Russian counterpart oversaw the event in person and via video-link.

The 162-kilometer railway will connect the Iranian city of Rasht, near the Caspian Sea, to Astara on the border with Azerbaijan.

The project, which is aimed at integrating the transport and information routes of Russia, Azerbaijan, Iran and India, is carried out within the framework of the International North-South Transport Corridor (INSTC).

Official: Railway project to help Iran reclaim position as Asia's trade passage

The Iranian Administration

Addressing the ceremony, Raeisi described the agreement as “an important and strategic step in the direction of Iran-Russia cooperation,” adding that it will help boost trade and economy in the region.

“Iran and Russia are cooperating in different fields. Today’s [railway construction] deal is one of the manifestations of cooperation not only between the two countries, but also other states on the path of the INSTC,” he said.

“The INSTC will benefit all regional states as it will establish friendship, convergence and commercial cooperation between the countries in East Asia, as well as those in the Caucasus and North Europe.”

The Iranian chief executive also noted that negotiations were held 20 years ago about the deal, but its signing was postponed.

The Russian president, for his part, said the Rasht-Astara railway would help connect Russian ports on the Baltic Sea with Iranian ports in the Indian Ocean and the Persian Gulf.

“The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows,” he added.

Putin further expressed hope for the exchange of foodstuff and other goods between the Caspian Sea and Persian Gulf countries through the INSTC.

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