Iran rejects reports that Russia quits Rasht-Astara railroad project

Iran’s Ambassador to Russia, Kazem Jalali, rejected allegations that Moscow has withdrawn from the Rasht-Astara railway project, calling it “psychological warfare against Tehran-Moscow ties."

News ID: 5286

Date: 21 October 2024 - 12:47

TABNAK, Oct, 21: He underlined that Western countries cannot tolerate the mutual cooperation between the Islamic Republic and Russia.

Elaborating on the latest situation of the Rasht-Astara railway, he said that the Russians have agreed to provide the loan for the project.

The interest on this loan and the duration of the railway line's construction have been specified, the envoy underscored.

The Russians expect the entire 162-kilometer route of the railway to be made available to their experts for studies, Jalali said.

Given the importance of the project, the Russian side expects the entire land to be acquired first, and then the studies to be completed, he noted.

In June, Minister of Transport of the Russian Federation Roman Vladimirovich stressed the importance of Iran’s Rasht-Astara railway as the missing link of the International North-South Transit Corridor (INSTC) saying that Russia is committed to completing the project.

“The work with Iran regarding the implementation of the Moscow-Tehran agreement continues in this regard, and we believe that the implementation of this project will increase rail traffic in the region,” the minister said in a specialized meeting on the sidelines of the 27th Saint Petersburg International Economic Forum.

According to the official, Russia has already signed memorandums of understanding in the field of transportation and transit within the framework of the INSTC from 2022 to 2024 with Iran, Turkmenistan, and Bahrain and is seeking to reach an agreement with other countries.

Back in April, Deputy Minister of Russian Railways Sergey Pavlov and Iran’s Ambassador to Russia met to discuss the implementation of Rasht-Astara railway project.

Iran and Russia, both under harsh Western sanctions, on May 17 inked an agreement on the long-stalled construction of a railway connecting the northern Iranian cities of Rasht and Astara.

Spanning 162 km (100.6 miles), the railway is a crucial element of the INSTC. The corridor integrates road, rail, and sea transportation, facilitating the movement of goods between Russia and India via Iran.

Through a video conference, late Iranian President Ebrahim Raisi and his Russian counterpart Vladimir Putin addressed the ceremony in Tehran where the two countries' transport ministers signed the agreement.

According to this agreement, the Russian Federation will invest 1.6 billion euros in this railway route.

Iran has been a key player in the INSTC and stands to benefit greatly from its full realization.

The operationalization of the corridor could mean improved relations between Iran and India, aligning New Delhi more closely with Tehran’s regional interests.

A vital element of the INSTC, the Rasht-Astara railway project has been stalled for years due to costs, engineering, and logistical complications.

Russian VTB Bank, the country’s second largest one, has opened a new office in Tehran is part of Iran and Russia's ongoing efforts to connect their banking systems.

The two countries signed an agreement on January 29 to link their inter-bank messaging systems.

Due to Western sanctions, both countries have been cut off from SWIFT—a leading Belgium-based financial messaging service.