Iran, Azerbaijan, Russia sign cooperation deal to solidify INSTC
Iran, Azerbaijan, and Russia signed a long-term cooperation agreement aimed at revitalizing the western route of the International North-South Transport Corridor (INSTC), the Islamic Republic of Iran Railways said on Friday.
The deal was finalized on the sidelines of the 83rd meeting of the Commonwealth of Independent States (CIS) Transport Council meeting in Baku, which brought together chief executives and delegations from 15 member states, IRNA reported.
The memorandum of understanding among the national railway operators of the three countries focuses on establishing fixed freight pricing, setting competitive unified tariffs, and expanding logistics services along the western leg of the INSTC — an alternative trade artery linking Russia, the Caucasus, and the Persian Gulf.
By signing the agreement, the three nations reaffirmed their commitment to sustainable and mutually beneficial bilateral and multilateral cooperation, with the shared goal of transforming the western route into an active regional transit corridor.
The move comes as part of broader efforts to enhance connectivity and trade efficiency across Eurasia amid shifting global supply chain dynamics.
Stretching over 6,000 kilometers from India’s Mumbai port to Russia’s St. Petersburg via Iran and Azerbaijan, the corridor offers a direct, multimodal connection between the Persian Gulf, the Caspian Sea, and Eurasian markets.
By shortening transit distances and cutting shipping times by up to 40 percent compared with traditional routes through the Suez Canal, it allows goods to move faster and at lower cost, boosting Iran’s competitiveness as a transit hub.