Iran, Russia Discuss Key Railway Connection Project

Iran’s President, Masoud Pezeshkian, has reaffirmed his country’s commitment to completing the Rasht-Astara section, which forms part of the International North-South Transport Corridor (INSTC).

In a meeting with Russian Deputy Prime Minister, Vitaly Savelyev, in Tehran on 23 December, Pezeshkian called on Moscow to begin surveying and initiating the construction of the Rasht-Astara section, located in Iran’s northern Gilan Province, according to the Iranian president’s official website.

He described the construction of the Rasht-Astara railroad as “one of the priorities” for the Iranian government, stating that “Iran adheres to all clauses of the agreement and is determined to implement it within the previously agreed timeframe.”

In turn, Savelyev said that Russia had allocated the necessary funds and coordinated the project with Azerbaijan. He added that Russia and Azerbaijan would upgrade their respective sections of the railway and called on Iran to modernize its portion.

Savelyev expressed hope that the railway’s completion would enable the transport of 15 million tons of cargo annually between Iran and Russia.

The Rasht-Astara section is part of the International North-South Transport Corridor (INSTC), a 7,200-kilometer multimodal network of ship, rail, and road routes designed to facilitate freight movement between India, Iran, Azerbaijan, Russia, Central Asia, and Europe. The railway link extending to the Iranian port of Bandar Abbas on the Persian Gulf would create opportunities for the corridor’s intensive development.

On May 17, 2023, Russia and Iran signed an agreement for the joint construction of the 162-kilometer Rasht-Astara railroad, connecting the overland sections of the North-South international transportation corridor and increasing the economic efficiency of the trans-Caspian route. The total construction cost is estimated at 1.6 billion euros, with 1.3 billion euros provided as a loan from the Russian Federation, and the remainder funded by Iran.

The visiting deputy PM handed over to President Pezeshkian an invitation from Russian President Vladimir Putin to pay an official visit to Russia “in the first days of 2025.” Pezeshkian’s visit is expected to take place before January 19, 2025, and it is anticipated that the two countries will sign a treaty on a comprehensive long-term strategic partnership between Moscow and Tehran, according to the Iranian foreign ministry.

The treaty will cover all spheres of bilateral cooperation and is expected to provide a significant boost to Russian-Iranian relations in various fields, including defense, energy, transport, industry, agriculture, culture, and science and technology.

Savelyev told reporters following the visit that the Russian delegation had discussed with the Iranian authorities four points for the construction of the Rasht-Astara railway section.

“We have made commitments on both sides to implement them. In particular, the Iranian side has committed to providing a land buyout schedule,” he added.

Following negotiations in Moscow between Azerbaijani Minister of Digital Development and Transport, Rashad Nabiyev, and Russian Transport Minister Roman Starovoyt, the two countries signed an agreement on cooperation in the development of cargo transit along the INSTC.

The agreement establishes a mechanism for coordinating the development of rail cargo transport and infrastructure along the western route of the North-South corridor via Azerbaijan. Under the agreement, simplified procedures will be introduced for cargo crossing the borders, and a balance will be ensured in the growth rate of cargo transit and the development of railway infrastructure. Starting on January 1, 2028, the cargo volume is expected to be at least 5 million tons, with a planned increase to 15 million tons per year.

In October, Russia proposed building a new 55-kilometer motorway and railway connecting Azerbaijan’s Imishli and Iran’s Parsabad as an alternative to the Rasht-Astara railway project.