India and Russia Sign Agreement for North-South Corridor via Iran

The governments of India and Russia have signed a cooperation agreement to facilitate and expedite the implementation of the plan to create an international North-South corridor through Iran. According to a report published by the Economic Times of India on Tuesday, the Russian Railways and India's largest freight transport entity signed this agreement to provide more joint support services for this international corridor project. The North-South International Transport Corridor connects the Indian Ocean and the Persian Gulf through Iran to the Caspian Sea, then from Russia to St. Petersburg and Northern Europe. The implementation of the North-South corridor has been delayed for years. However, the execution of this corridor could play a larger role in the economic development of Eurasian countries and Afghanistan while also generating significant transit revenue for Iran. India and Russia have been negotiating for years to establish cooperation among countries in the Eurasian region, the Indian subcontinent, and the Persian Gulf through railways and roads in Iran. In September 2000, a trilateral agreement was signed among Iran, Russia, and India in St. Petersburg, Russia. Since then, Iran, Russia, and India have been leading efforts to activate this corridor with multiple routes including sea, rail, and road, covering a distance of 7,200 kilometers. In subsequent steps to implement this corridor, ten new members including Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman, and Syria joined, with Bulgaria also participating as an observer member. Recently, India took over the management of the Chabahar port in Sistan and Baluchestan province. India has previously spent about $100 million to construct a 220-kilometer road in western Afghanistan to connect to Chabahar port and is set to invest $500 million for the development of Chabahar port, part of which has already been invested. India is responsible for the development of Chabahar port in Sistan and Baluchestan and, along with Afghanistan, hopes to bypass Pakistan and use a shorter route for trade, which also includes Central Asian countries. The United States has exempted the development of Chabahar port from its sanctions against Iran. The North-South corridor is the most important trade link between Asia and Europe, which is up to 40% shorter in distance and time and up to 30% cheaper in cost compared to traditional routes. Indians, with favorable economic conditions, are keen to use the North-South corridor to supply their goods and products more cheaply in global markets.