New Russia-Iran trade route opens, bypassing Western sanctions -

Moscow: The International North-South Transport Corridor (INSTC), a trade route connecting Russia and Iran through the Caspian Sea, has become operational. It will provide a major impetus to the trade cooperation between Russia and Iran. US-based newspaper Bloomberg has claimed that this trade route will circumvent Western sanctions imposed on Russia-Iran. The newspaper reported that this new trade route would connect Russia directly to Iran and Asian countries.

Russia and Iran have prioritised increasing cooperation through a new supply chain. In the wake of these events, Russia sent its first cargo of two 40-foot containers from St. Petersburg using the INSTC route at its destination in Iran at Astrakhan port on the Caspian Sea in June. The containers were loaded on trucks after docking in Iran. Subsequently, the containers were loaded on a ship stationed at the Bandar Abbas port of Iran and reached the Kandla port of India.

Russian cargo ships travelling through the Don River, Azov Sea, and Caspian Sea are reaching the Middle Eastern and Asian countries directly without detouring to Europe or China. US newspaper Bloomberg warned about the INSTC route connecting Russia and Iran. European countries have closed their sea routes to Russian ships because of the Ukraine conflict. Under such circumstances, the newspaper claimed that sanctions imposed by the West would not affect Russia and Iran.

A few months ago, Russia signed a long-term, multi-billion-dollar deal with Iran. Bloomberg claims that this new trade route will greatly help the agreement. In the first ten months of 2022, the trade between Russia and Iran has increased by four billion dollars. The newspaper recalled that the bilateral export had risen from 10 per cent to 27 per cent in the last year.