Tehran, Moscow, and Baku Seal Landmark Deal to Boost Cargo Transit

In a significant move to enhance regional connectivity, Iran, Russia, and Azerbaijan have reached an agreement to substantially increase the volume of cargo transported through their territories, stretching from the Baltic and Barents Seas to the Persian Gulf.

Iran (MNA) - Iran’s Minister of Roads and Urban Development, Farzaneh Sadegh, announced on Monday that the three countries have set an ambitious target of 15 million metric tons of annual cargo transit along this route.

Sadegh made the announcement following a trilateral meeting in Baku, where she discussed transport, energy, and customs cooperation with Azerbaijan’s Deputy Prime Minister Shahin Mustafayev and Russia’s Deputy Prime Minister Alexey Overchuk.

According to Sadegh, the three sides agreed to modernize and streamline customs procedures in order to facilitate a smoother and faster flow of goods. She also highlighted that Iran and Russia are accelerating the construction of a key railway link in northern Iran, which will play a vital role in boosting transit capacity along the International North–South Transport Corridor (INSTC).

The Iranian minister added that the Rasht–Astara railway, a 160-kilometer stretch crucial to the INSTC, will see Russian contractors begin construction work after March 2026, once Iran completes land acquisitions and preparatory measures.

Russian Deputy Prime Minister Alexey Overchuk praised the outcome of the Baku meeting, noting that the three nations are working toward establishing a common commodity market supported by barrier-free logistics, enabling seamless transit from northern Europe to the Persian Gulf.

Speaking to Russia’s Tass news agency, Overchuk emphasized that the expanded transit capacity under the INSTC framework would contribute to greater economic welfare across Iran, Russia, and Azerbaijan, delivering significant advantages for producers, exporters, and importers alike.

News ID 914940

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