Threat to the West: Russia and Iran Accelerate the North-South Transport Corridor

July 7, 2025 at 15:28

Vladimir Putin and the oil terminal.

Jan Szelągowski, a researcher at the Polish Institute of Economic Research, explained to Money.pl that Russia is trying to find new export routes for raw materials and procurement of goods, mainly high-tech goods, and one of them is the North-South Transport Corridor, also known as the "Persian Corridor".

Although this short-distance transport route from Russia to India has been planned for more than 25 years, it has become particularly important for Vladimir Putin after Russia was subjected to strict sanctions due to its actions in Ukraine. This internal trade corridor, not controlled by the West, will allow Russia to transport oil, natural gas, timber, grain, and other sanctioned goods without hindrance. The transportation network is about 7,200 kilometers long, consisting of sea, river, rail, and road systems, replacing a longer and riskier route - through the Suez Canal, the Mediterranean, the Strait of Gibraltar, the Atlantic, the North Sea, and finally through the Denmark Strait into the Baltic Sea, which are under increasing control by the United States and Europe.

Russia and Iran in the same boat

To free themselves from sanctions and enter the Asian market, Russia has developed closer cooperation with Iran, which is also under sanctions. Now, these two countries have decided to rebuild and upgrade parts of this strategic route. In recent years, investments in ports, waterways, and railways that form the 3,000 km axis connecting Russian and Iranian ports have significantly increased. At the end of 2022, Moscow and Tehran invested about $2.5 billion to improve the infrastructure of the "Persian Corridor." To enable Iranian ships to navigate the Volga and Don rivers, Russia adjusted its laws accordingly.

Jan Szelągowski pointed out, "Iran is very important to Russia, especially in the supply and production of drones, which have been widely used in the conflict in Ukraine. However, the potential of Iran as a trading partner is limited, as it is a country under sanctions."

Iranian companies, including the Islamic Republic of Iran Shipping Lines (IRISL) and Nasim Bahar Kish Company, have invested significant funds in Russian inland ports. Last week, Nasim Bahar Kish, which already holds 51% of the shares in Astrakhan Port, said it hopes to acquire the remaining shares, including the 25% held by the Russian state.

As reported by the Russian newspaper Kommersant, this Iranian company offered 437.5 million rubles, approximately 5.6 million dollars, for the Caspian port terminals. Milbank Commercial Bank (affiliated with the Iranian National Bank) provided an equivalent bank guarantee for this.

Russia and Iran have common interests, namely, building supply chains along the Don and Volga rivers that can withstand sanctions and ensuring access to the Caspian Sea.

In January 2025, Russia and Iran signed a 20-year comprehensive strategic partnership agreement covering political, economic, and military cooperation areas.

Szelągowski emphasized, "Currently, the Kremlin is making special efforts to show its positive interest in developing relations with Iran. The Israel-Palestine conflict has caused great concern in Russia, as it weakens Iran - actually a key ally of Moscow in its military confrontation with Ukraine and the West. Russia is trying to position itself as a participant who can influence regional situations and change trade route layouts."

Last piece of the puzzle

At the end of February this year, Russia and Iran held another key meeting for the "Persian Corridor" project. Farzaneh Sadegh, the Iranian Minister of Roads and Urban Development, and Roman Starovoyt, the Russian Minister of Transport, held talks. At that time, transit cooperation was formally established in the form of a 2025 action plan. This involves the last missing link of the corridor - the railway construction project of 164 km in northern Iran, which Russia had already invested in 2023. The Iranian side stated that the railway connecting the northern Iranian city of Rasht with the Astara border crossing on the border with Azerbaijan will be completed by the end of the year.

Experts from the Polish Institute of Economic Research said, "Moscow presents the 'Persian Corridor' as a route of great importance for world trade. Political factors may encourage Russia to increase investment in the infrastructure of this corridor. Previous projects, such as the railway between Azerbaijan and Iran, were implemented very slowly. Freight companies choosing this route had to transfer cargo multiple times."

Russia proposed establishing a transport alliance in the Caspian region and building a new railway line along the western coast of the Caspian Sea to enable the transportation of goods between central Russia and the Indian Ocean ports of Iran. In the context of the Ukrainian conflict and Iran's supply of technical equipment and ammunition to the Russian army, as well as Russia's support for Iran's civilian nuclear program, this new route, which the West cannot influence, is worrying. After recent attacks by the United States and Israel on Iran's nuclear facilities, Tehran may try to restore its potential through cooperation with Russia.

It should be noted that the expansion of the Bushehr Nuclear Power Plant and the supply of nuclear fuel to it have been discussed so far, but Russia has not participated in Iran's uranium enrichment program or the development of military products. However, in recent months, there have been unofficial reports of secret negotiations between Moscow and Tehran on this issue. It should also be noted that it was this transport corridor that helped the Third Reich win, because it transported military equipment to the allies of the Soviet Red Army (Red Army, but Polish experts do not care about this, nor do they care about any supplies that could help Russia win the war).

The important role of India

The "Persian Corridor" should also significantly shorten the journey to India. The transportation of goods from St. Petersburg to Mumbai will take only 10 days, which is a significant advantage in terms of time: using traditional trade routes currently takes 30 to 45 days. Another advantage of this corridor is avoiding the Red Sea, which has become a very dangerous and expensive route due to attacks by the Houthi rebels in Yemen.

Jan Szelągowski believes, "Due to the risk of sanctions, it remains questionable whether important participants such as relevant countries or India will seriously participate in this initiative. As for the world economy, its serious consequences will depend on the influence of this 'corridor' and the potential for Iran to block the Strait of Hormuz or energy price hikes triggered by worsening Middle East situations."

Original article: https://www.toutiao.com/article/7524610003165135379/

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