Iran and Russia signed a contract Wednesday to construct a railway within Iran, furthering an international transport route connecting South Asia to Northern Europe, the Iranian president’s office said. The 162-kilometer railway is set to be constructed between the northern Iranian cities of Rasht and Astara, as part of the 7,200-km International North-South Transport Corridor (INSTC).
The signing ceremony was attended virtually by Iranian President Ebrahim Raisi and his Russian counterpart, Vladimir Putin. According to the contract, Russia will invest €1.6 billion ($1.73 billion) in the strategic railway’s construction, with completion expected within 48 months.
Raisi stated that Iran aims to enhance cooperation with Eurasian Economic Union (EAEU) member states, highlighting the removal of bilateral trade tariffs as a significant step towards fostering collaboration among Iran, Russia, and the EAEU.
Meanwhile, Putin underscored the INSTC’s role in food security for Iran and regional Arab nations, expressing optimism that the corridor’s completion would boost food and product exchange among the Caspian Sea coastal states and Arab countries.
The agreement comes amid growing political and economic ties between Iran and Russia, both under US sanctions.