Iranian President Ebrahim Raisi and his Russian counterpart Vladimir Putin on Wednesday oversaw the signing of an agreement on the construction of a railway line between Iran’s northern city of Rasht and Astara on the border with Azerbaijan to facilitate regional trade.
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The 164-kilometer railway line, which will connect Iran, India, Russia, Azerbaijan as well as other regional countries, is the only missing link in the International North-South Transport Corridor (INSTC), a 7,200-km multimode transportation network.
The agreement worth $1.6 billion was signed by Iranian Transport Minister Mehrdad Bazrpash and his Russian counterpart Vitaly Savelyev.
During the signing ceremony, held via video-link in Tehran and Moscow, Raisi and Putin said the ambitious agreement would help in the transit of goods.
The Iranian leader termed the railway agreement “an important and strategic step†in cooperation between the two countries.
He hailed it as a manifestation of cooperation between Tehran and Moscow as well as other INSTC countries, adding that his government plans to promote Iran's role in the regional economy.
“The INSTC will benefit all regional states as it will establish friendship, convergence and commercial cooperation between the countries in East Asia, as well as those in the Caucasus and North Europe,†Raisi said.
Putin, for his part, said the agreement for the joint construction of the Rasht-Astara railway line is a “great event†for the entire region and world transport infrastructure.
"The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows. Transportation along the new corridor will have significant competitive advantages," he added.
Putin noted that the delivery of goods from St. Petersburg to Mumbai would take about 10 days on the new route, whereas this would take up to 30-45 days on traditional routes.
"There is a significant saving in terms of time and costs," he added. ■