Iran and Russia, both heavily sanctioned by the West, are forging a new economic lifeline that could redefine global trade. The construction of the Rasht–Astara railway, a 162-kilometre stretch in northern Iran, is emerging as a cornerstone of the International North–South Transport Corridor (INSTC) — a 7,200-kilometre network linking India, Iran, Russia, and Europe through a mix of sea, rail, and road routes. The project aims to reduce shipping time from 37 days to 19 and cut transport costs by 30 per cent, creating a trade pathway immune to Western maritime dominance.
Financed mainly by Russia for €1.6 billion, the railway is being built by Russian engineers under a 20-year Comprehensive Strategic Partnership Treaty signed with Tehran in January 2025. The project signifies more than infrastructure cooperation; it represents a strategic countermeasure to Western economic containment. Once operational, the corridor is expected to move up to 20 million tonnes of cargo annually, carrying vital goods such as oil, gas, steel, and food through territories beyond the reach of U.S. naval or financial control.
The INSTC also integrates neatly with China’s Belt and Road Initiative, forming a unified Eurasian trade grid that connects the South China Sea to the Baltic Sea. Together with blocs like BRICS and the Shanghai Cooperation Organisation (SCO), this alignment reflects a coordinated shift toward a multipolar world order that sidelines Western influence.
Moscow’s recognition of Afghanistan in 2024 could further extend the corridor into Central and South Asia, offering an alternative route that bypasses Pakistan. In contrast, India’s IMEC corridor, backed by the United States and its allies, remains largely conceptual.
Each kilometre laid between Rasht and Astara erodes the West’s ability to enforce economic isolation. The project signals a larger geopolitical message: sanctions are losing power, and global commerce is moving steadily toward a post-Western, multipolar framework.
