Tehran, Moscow and Baku Seal Landmark Deal to Boost Trade from Baltic to Gulf

By Staff, Agencies

Iran, Russia and Azerbaijan have reached a landmark agreement to dramatically expand cargo transit across their territories — connecting northern Europe’s Baltic and Barents Seas to the Gulf through the International North–South Transport Corridor [INSTC].

Iran’s Minister of Road and Urban Development, Farzaneh Sadegh, announced on Monday that the three nations had set an ambitious target of 15 million metric tons of annual cargo transit through their joint transport routes.

Sadegh made the announcement following a high-level trilateral meeting in Baku with Azerbaijan’s Deputy Prime Minister Shahin Mustafayev and Russia’s Deputy Prime Minister Alexey Overchuk, during which the officials discussed transport, energy, and customs cooperation.

According to Sadegh, Tehran, Moscow, and Baku agreed to modernize and integrate their customs systems to eliminate bureaucratic hurdles and accelerate the movement of goods. She emphasized that these efforts would help transform the INSTC into one of the most vital trade corridors linking northern Europe to South Asia and the Middle East.

The Iranian minister also revealed that Iran and Russia have accelerated the construction of the Rasht–Astara railway — a critical segment of the INSTC running through northern Iran. She noted that the Russian contractor would begin physical work on the 160-kilometer line after March 2026, once Iran completes land acquisitions and site preparations.

Russian Deputy Prime Minister Overchuk hailed the progress made in Baku, describing the trilateral framework as a step toward creating a shared economic and logistics space connecting the three nations.

He told Russia’s TASS news agency that increased transit along the INSTC would bring substantial economic benefits to producers, exporters, and importers, ultimately enhancing prosperity across the region.

“The vision,” Overchuk said, “is to build a barrier-free commodity market stretching from the Barents and Baltic Seas to the Gulf — a corridor of growth for our peoples”.