Sanction busting new Iran-Russia intercontinental railroad agreement seeks to take on Suez Canal
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Russia and Iran inked an agreement to finance a $1.7 billion rail system to connect a major global trade network amid international sanctions.
"The unique North-South transport artery, of which the Rasht-Astara railway will become a part, will help to significantly diversify global traffic flows," Putin said.
According to the Iranian Transport and Urban Development Ministry, Russia will invest $1.7 billion in the railway route, though it did not specify whether Iran would also be contributing to the financing of the rail system, the Tehran Times reported.
Iran and Russia are under international sanctions that restrict trade, and both world leaders have championed increased ties as necessary to counter Western dominance.
"Without a doubt, this agreement is an important and strategic step in the direction of cooperation between Tehran and Moscow," Raisi said in reference to the 100-mile-long railway that will run along the Caspian Sea.
Putin championed the agreement as a vital component in connecting the Baltic Sea with Iranian ports in the Indian Ocean and the Gulf.
Iranian transport minister Mehrdad Bazrpash reportedly met with special envoy to the Russian president Igor Levitin in January to review not only the railway agreement but to discuss how to develop Iranian and Russian cooperation even further – suggesting future plans could also be in the works.
Reuters contributed to this report.
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