Tehran and Moscow are in the final stages of drafting a contract to advance the construction of the Rasht-Astara Railway, a project integral to the International North-South Transport Corridor (INSTC). The development was announced following a recent meeting between Sergey Pavlov, Deputy Minister of Russian Railways, and Kazem Jalali, Iran’s Ambassador to Russia.

The two officials focused on formalizing the agreement to implement the railway connection between Rasht and Astara, cities located in northern Iran. This infrastructure aims to enhance regional connectivity and boost trade flows along the INSTC, a multi-modal freight route intended to link Russia, Iran, India, and beyond.

During their discussions, both parties reviewed the progress of bilateral cooperation on the project and explored opportunities to further develop transportation services within the INSTC framework. The ministry overseeing Iran’s roads and urban development noted that Russian containerized cargo shipments via the eastern segment of the corridor experienced significant growth, with volumes increasing 400 percent in the first quarter of the year compared to the same period in 2023. Key border crossings facilitating this traffic include Sarakhs and Incheh Boroun.

Pavlov also highlighted ongoing negotiations concerning tariff rates for transporting key commodities such as chemical fertilizers and coal from Russia to Iran, as well as onward shipments to the United Arab Emirates and India. These talks aim to streamline freight costs and promote efficient logistical operations along the corridor.

The railway project comes amid broader efforts by Iran and Russia to strengthen economic ties despite facing international sanctions. On May 17, the two countries formally signed an agreement to initiate the long-delayed construction of the Rasht-Astara rail link, signaling renewed momentum in their transportation cooperation.

If completed, the railway will provide a critical north-south connection within Iran that complements the broader INSTC route, facilitating faster and more cost-effective trade between Northern Eurasia and South Asia. The collaboration reflects both countries’ strategic interest in expanding regional transport infrastructure to circumvent geopolitical constraints and increase commercial exchanges.