Russia activates its alternative routes to replace transit and shipping through the Black Sea, while Iran Saudi Arabia upgrade their newly revived relations

The chief executive of the Islamic Republic of Iran Railways (RAI) announced on 27 August the transit of Russian cargo to Saudi Arabia via the Iran transport corridor for the first time.

A transit train hauling 36 containers entered Iran for the first time from Russia through Iran’s Incheh Borun rail border near Turkmenistan, Miad Salehi stated.

The deputy roads minister added that this cargo transit train was dispatched to the port city of Bandar Abbas on the Strait of Hormuz and will be transferred from there to the Saudi Arabian port city of Jeddah by sea.

Russia seeks to develop the International North–South Transport Corridor (INSTC) to connect India, Iran, Russia, Azerbaijan, and other countries via railways and sea.

Russia says the INSTC will rival the Suez Canal as a major global trade route.

In May, Russian President Vladimir Putin and his Iranian counterpart Ebrahim Raisi signed a deal to finance and build an additional Iranian railway line between the cities of Rasht and Astara.

“The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows,” Putin said.

He also said the 162-kilometer railway along the Caspian Sea coast would help to connect Russian ports on the Baltic Sea with Iranian ports in the Indian Ocean and the Gulf.

“Without a doubt, this agreement is an important and strategic step in the direction of cooperation between Tehran and Moscow,” Raisi said.

Iran hopes the successful development of Russian-financed railway links comprising the NSTC will increase transit revenues and reinforce Iran’s “Look to the east” policy of strengthening ties with neighboring countries and eastern powers in response to western economic sanctions.

Raisi’s Deputy Chief of Staff for Political Affairs, Mohammad Jamshidi, claimed that the INTSC earnings would rival Iran’s oil revenue. In this vein, the semi-official ISNA on May 17 estimated annual revenue of $20 billion from the corridor.

State broadcaster-run Jam-e Jam newspaper described Iran as the “golden path of trade” in an article highlighting the potential benefits of the railway.

Iran and Russia have developed closer economic, diplomatic, and military ties in recent years, as both countries have been subject to US economic sanctions and have resisted US foreign policy in West Asia, including Syria, and the former Soviet states, including Ukraine.