Iran, Russia, Azerbaijan reach full agreement to complete INSTC: Minister
Iran’s Minister of Roads and Urban Development Farzaneh Sadeq announced that a comprehensive agreement has been reached between Iran, Russia, and Azerbaijan to complete the International North-South Transit Corridor (INSTC), one of the country’s most important transit routes.
Speaking at the conclusion of the 16th meeting of the Iran-Azerbaijan Joint Economic Commission on Wednesday, Sadeq emphasized the critical role of the Rasht-Astara route in the corridor.
She noted that Azerbaijan, as a bridge between Russia and Iran, plays a key role in facilitating cargo transportation among the three nations.
Sadeq highlighted that trilateral meetings between Iran, Azerbaijan, and Russia are underway to activate the INSTC, with a target of handling 15 million tons of transit cargo, and expressed hope that these efforts would yield results soon.
The minister also addressed the trade potential between Iran and Azerbaijan, stating that bilateral trade reached $487 million in 2023, with Iran exporting $473 million worth of goods and importing $14 million from Azerbaijan.
In the first 11 months of 2024, trade volume rose to $583 million, with Iranian exports accounting for $570 million and imports totaling $12.9 million. Sadeq stressed that the two countries have the potential to significantly increase trade, setting a five-year target of $10 billion.
Sadeq underscored the current administration’s commitment to expanding bilateral relations and removing barriers to cooperation.
She expressed satisfaction with the successful hosting of the 16th Joint Economic Commission meeting in Tehran after a three-year hiatus and expressed hope that follow-ups on agreements in transportation, customs, energy, oil, gas, electricity, water, banking, preferential trade, and investment would open new avenues for collaboration.
The minister proposed drafting a roadmap to achieve the $10 billion trade target and called for swift resumption of negotiations to boost trade volumes.
She emphasized that transit cooperation is a fundamental area of collaboration between the two countries, with significant untapped potential in rail, road, air, and maritime transport.
Sadeq acknowledged existing transit challenges but expressed optimism that comprehensive commission meetings would help resolve them.
She highlighted key infrastructure projects, including the inauguration of the second Astarachay Bridge last year, progress on the construction of Kalaleh border bridge, and ongoing road and rail projects such as the Aqband-Nakhichevan route via the Jolfa border and the Astara railway.
The meeting, held in Tehran after a three-year pause, brought together technical and expert groups from both countries to discuss economic, trade, cultural, transportation, tourism, energy and other areas of cooperation.