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

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

    Tuesday, August 29, 2023   No comments

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.

African leaders are increasingly calling for use of African currencies for African trade; President of Kenya calls on all African countries to abandon the US dollar for local trade transactions

African leaders are increasingly calling for use of African currencies for African trade; President of Kenya calls on all African countries to abandon the US dollar for local trade transactions

    Tuesday, June 13, 2023   No comments

Realizing that much of the economic problems of Africa are due to unfair financial practices at the hands of institutions controlled by colonial powers, African leaders are now willing to look at local solutions to local problems--including using local currencies for local trade.  

President William Ruto stressed that the mechanism that will allow Africans to switch to local currencies will be provided by the African Export-Import Bank (Afreximbank).

Afreximbank is a supranational financial institution that unites most African countries (51 states).

The cost of currency convertibility due to the use of U.S. dollars in trade among African countries is close to 5 billion dollars annually, according to Wamkele Mene, secretary general of the AfCFTA Secretariat. "That is expensive and so we have rolled out the pan Africa payment and settlement system that enables trading in local currencies."

he African Continental Free Trade Area (AfCFTA) is striving for the usage of local currencies in trade among countries in the continent, an official said Thursday.

Cross-border trading among countries in the Economic Community of West African States is already happening through the use of local currencies instead of the use of U.S. dollars, said Wamkele Mene, secretary general of the AfCFTA Secretariat, on the sidelines of a trade forum in the Kenyan capital of Nairobi.

"We now want to expand to other regional blocs including the East African Community which is in talks with the African Export-Import Bank," Mene said.

He said that the cost of currency convertibility due to the use of U.S. dollars in trade among African countries is close to 5 billion dollars annually. "That is expensive and so we have rolled out the pan Africa payment and settlement system that enables trading in local currencies."

Kenya President William Ruto has urged African leaders to sign up for the pan-African payments system to facilitate trade within the continent to reduce reliance on the US dollar.

He urged his peers in Africa to mobilise central and commercial banks to join the Pan-African Payments and Settlement System, which was launched in January 2022, Business Daily newspaper reported.

The system for intra-African trade was developed by African Export-Import Bank (Afreximbank) and African Continental Free Trade Area (AfCFTA), an initiative backed by the African Union and African central banks.

“We are all struggling to make payments for goods and services from one country to another because of differences in currencies,” the president told an AfCFTA forum in Nairobi.

“There has been a mechanism where all our traders can trade in the local currency, and we leave it to the Afreximbank to settle all the payments. We do not have to look for dollars,” he said, seeking settlement of payment through local currencies.

Iran and Russia sign an agreement to build a railway line boosting the North-South Trade Route initiative

Iran and Russia sign an agreement to build a railway line boosting the North-South Trade Route initiative

    Thursday, May 18, 2023   No comments

Russian President Vladimir Putin and his Iranian counterpart, Ebrahim Raisi, witnessed via video link today, Wednesday, the signing of an agreement to finance and build a railway in Iran, as part of plans to establish an international transport corridor linking the north and south.

The railway line between the cities of Rasht and Astara is seen as an important link in the international corridor, which aims to connect India, Iran, Russia, Azerbaijan and other countries by rail and sea.

Russia says this corridor can rival the Suez Canal as a major route for global trade.

Putin said that the unique north-south transport route - of which the Rasht-Astara railway will become a part - will contribute to a significant diversification of global transport flows.

He added that the railway line - which extends 162 km along the Caspian Sea coast - will help connect Russian ports on the Baltic Sea with ports.

Iran bordering the Indian Ocean and the Gulf.

In turn, the Iranian president said that this agreement is undoubtedly an important and strategic step in the field of cooperation between Tehran and Moscow.

Western sanctions imposed on Russia and Iran have pushed the two countries to strengthen their political and economic relations, and both countries say the sanctions are unjustified.

Since 1979, the West has imposed numerous sanctions on Iran, which has about a quarter of the oil reserves in the Middle East, and its economy has been paralyzed. The West has also imposed another set of restrictions on the Iranian nuclear program, and imposed sanctions on Russia because of its war in Ukraine.

The agreement between Russia and Iran, with support from India, will make this initiative one that would compete with the Suez Canal, reducing the strategic importance of the Suez Canal and revenues for the Egyptian government. Aware of this connection between these trade systems, Egypt and Iran increased their low level talks to repair their diplomatic relations that have been downgraded since 1979.

The North-South Trade line is not isolated from the China-backed Belt and Road initiative, in fact it is seen as a complementing project. For that to be true, Pakistan must be integrated into this project. It is no coincidence then that the Iranian president, hours after signing the agreement with Putin, visited the border with Pakistan to emphasize two critical things: The integration of Pakistan into the Asia economy anchored by China and Russia and to address the security issue in the border with Pakistan, which recalls the increasing role now played by the SCO in regional security matters.

 

To these ends, Iranian President Ebrahim Raisi said today, Thursday, that he is in the process of implementing joint border projects between Iran and Pakistan. He added during a joint press conference with Pakistani Prime Minister Shehbaz Sharif in Sistan and Baluchistan province on the sidelines of the opening of the electricity transmission project to Pakistan that part of the border markets with Pakistan has not been activated so far, and its problems will be resolved during this visit.

He pointed out that his country's government will also follow up the implementation of economic and tourism projects and border transportation.

The Iranian president said: "We will take more field steps to exchange energy and electricity with Pakistan, in addition to energy exchange and the launch of a joint border market between the two countries."

He confirmed that 6 other joint markets are being planned to be launched soon. He added that today's meeting, with the participation of the Pakistani Prime Minister, carries an "important message that borders can contribute to enhancing security between the two countries."

He pointed out that Pakistan's security "is the security of the entire region, which is our security, and the presence of foreigners in the region will not solve its security problems."

Raisi also touched on the outcome of the American presence in Afghanistan, saying that this presence contributed to "killing, wounding, disabling and displacing many of the people of this country."

For his part, Sharif said that Iran and Pakistan are "two brothers and two friends who share a common culture and history."

He added, "Means of strengthening economic relations in the future were discussed," stressing: "We will overcome all challenges and difficulties to achieve this goal."

Earlier, Iranian President Sharif met at the Bish-Mand joint border, as the two sides discussed developing joint trade relations.

Raisi and his accompanying delegation arrived Thursday morning in the province of Sistan and Baluchestan to follow up on a number of development projects in the province.

During this visit, Raisi followed up on the progress made in the strategic project to develop the "Makran coasts", and the inauguration of the water pumping process in the "Kahir Dam" and the operations of extending water to a number of villages in this province.

He pointed out that the development of the province of Sistan and Baluchestan is one of the priorities of the government's plans, adding: "The plans and programs set for this province, especially the Makran region, will be followed up."

Upon his arrival at Konark Airport, Raisi noted that the beaches of Makran have a lot of "good potentials for the economy, tourism and maritime economy."

He added, "Thanks to the victory of the Islamic Revolution, good measures and steps were taken in developing the province and developing its tourism and economic potential."

He stated that one of the objectives of this visit is to meet Pakistani Prime Minister Shehbaz Sharif on the former borders of the city of Rask, and to follow up on planning economic projects, road tourism and infrastructure for the province of Sistan and Baluchestan.

Venezuela aiming to insolate its economy from western sanctions builds new ties with Iran and Russia

Venezuela aiming to insolate its economy from western sanctions builds new ties with Iran and Russia

    Sunday, April 09, 2023   No comments

A year after the inking of the cooperation agreement between the CEO of Iran’s SAIPA Automotive Group Mohammad Ali Teimouri and Venezuelan Minister of Transportation Ramón Velásquez at the venue of SAIPA Company in Tehran in order to produce Iranian cars in this country as joint venture (JV), Russia signs a transport deal with Venezuela.

Russia and Venezuela intend to create a shipping company to strengthen ties between Latin America and Russia. As part of the initiative, Moscow and Caracas plan to establish two transportation hubs to increase cooperation and establish a logistics chain. An intergovernmental commission has already decided to create such a company, which will be financed from public and private sources. The company could be registered in Sevastopol, St. Petersburg or Novorossiysk, and joint construction of ships is also planned.

New trade routes will greatly facilitate Russian exports to Latin America, since the region is actively interested in grain, sunflower oil and agricultural machinery from Russia. In turn, Russia will be able to import seafood and fruit at bargain prices. Venezuela will play the role of an operational center.

Putin: The relations between Russia and China are developing...and waiting for the Chinese President's visit

Putin: The relations between Russia and China are developing...and waiting for the Chinese President's visit

    Wednesday, February 22, 2023   No comments

Russian President Vladimir Putin announced today, Wednesday, that Russian-Chinese relations are developing as planned, stressing that the two countries are reaching new stages.

This came in a meeting with the Head of the Bureau of the Foreign Affairs Committee of the Communist Party of China Central Committee, Wang Yi, in which, on the Russian side, the Minister of Foreign Affairs, Sergey Lavrov, and the Secretary of the Russian Security Council, Nikolai Patrushev, participated.

Putin added, during the meeting, that "Russia is waiting for Chinese President Xi Jinping on its territory," saying that "a visit like this will give impetus to the development of relations between the two countries."

And he stressed that "Russia is aware of the very important internal political developments that have taken place recently in China, which certainly contribute to the country's strength, and create the appropriate conditions for its continuous development in accordance with the plans of the Chinese Communist Party."

Speaking about the growing trade relations between Beijing and Moscow, the Russian president indicated that "the volume of trade exchange between the two countries will reach $200 billion before 2024."

"We set a goal to reach the level of 200 billion dollars in 2024. Last year it already reached 185 billion, and there is every reason to believe that we will achieve our goals in terms of trade, perhaps even earlier than planned," Putin told Wang Yi. .

Lavrov, in turn, stated that relations between Russia and China are developing dynamically despite the international turmoil, stressing that Moscow and Beijing are ready to defend each other's interests.

For his part, Wang Yi stressed during his talks with Lavrov that "Russian-Chinese relations maintain a high momentum," expressing his hope to "reach new agreements."

The Chinese official pointed out that "the Chinese-Russian relations, which are based on broad partnership and strategic cooperation in the new era, maintain a high momentum of development thanks to the strategic direction of President Xi Jinping and President Vladimir Putin."

And the Chinese Ministry of Foreign Affairs announced earlier today that Russia and China agreed to jointly confront all forms of unilateral intimidation.

"The two sides expressed their willingness to jointly practice true multilateralism, confront all forms of unilateral intimidation, and promote the democratization of international relations and multipolarity," she added.

The two sides also agreed to further strengthen multilateral cooperation, and stressed the need to maintain peace and stability in the Asia-Pacific region.

This came during a meeting between the Secretary of the Russian Security Council, Nikolai Patrushev, and Wang Yi, yesterday, Tuesday, which dealt with the development of bilateral relations between Russia and China.

GT, Chinese English Daily, reported that Chinese top diplomat Wang Yi started his Russia visit on Tuesday after his trip to France, Italy, Hungary and a series of meetings with diplomats from countries including the US and Ukraine in Germany on the sideline of the Munich Security Conference, with analysts saying China is making efforts for mediation by engaging with all relevant parties involved in the Russia-Ukraine conflict, while the US keeps on adding fuel to the flame and exploiting the conflict to make a political show. 

The 36th summit of the African Union.. What is on its agenda?

The 36th summit of the African Union.. What is on its agenda?

    Saturday, February 18, 2023   No comments

A number of challenges are facing the African summit, most notably considering the file of the Grand Ethiopian Renaissance Dam, as well as the frozen memberships of countries, including Sudan.

There will also be closed sessions to adopt the agenda, and to hear reports on the state of peace and security, and the African Free Trade Area, in addition to other files related to the evaluation of the implementation plan for the first decade of Africa's Vision 2063, and the reform of the United Nations Security Council.

In a speech, the Chairman of the African Union Commission, Moussa Faki, said, "What is required is to activate the African Free Trade Area quickly to meet the various challenges," adding that the continent's partners "impose strict conditions for financing our various projects."

Faki also called for "the necessity of reforming global governance that excludes Africa from the Security Council," noting that "some of the goals adopted by the continent have not been achieved due to the lack of political will among some."

The Chairperson of the African Union Commission warned of the expansion of terrorism in Mali, Burkina Faso and Chad, explaining the need for international solidarity with the affected countries.

For his part, the Ethiopian Prime Minister said in his speech that "Africa must be represented in the Security Council with at least one permanent seat and two non-permanent seats."

In turn, UN Secretary-General Antonio Guterres said, "The Russian-Ukrainian war has directly affected the lives of the African people, who bear the greatest challenges," he said.

Guterres considered that "Africa needs international financing to relieve the burden of debt burdened with it," calling on the other hand for the return of the democratic path in Sudan, Mali and Burkina Faso.

And the Ethiopian Foreign Ministry announced earlier that the leaders of 36 African countries confirmed their attendance at the summit, which begins with an open session that includes several speakers, most notably Senegalese President Macky Sall, head of the ending session of the Union, and President of the Comoros Ghazali Osmani, head of the next session, in addition to the Secretary-General of the United Nations.

In a message to African leaders, Chinese President Xi Jinping said Saturday that he stands ready to work with leaders of African countries to build a high-level China-Africa community with a shared future.  Xi made the pledge in his message to the 36th African Union (AU) Summit, in which he extended congratulations to African countries and the African people on the opening of the summit, according to Chinese media reporting.