Why it matters:
Iran and Russia have signed a comprehensive strategic cooperation agreement. The focus is particularly on energy investment, trade, and infrastructure development.
State of play:
- In 2024, Russia became the largest foreign investor in Iran’s energy sector, particularly oil and gas.
- Russia has committed $8 billion to Iranian gas projects, with $5 billion already finalized.
- A free trade agreement with the Eurasian Economic Union has been implemented, further integrating the economic interests of both parties.
- Banking ties have strengthened with the integration of Iran’s MIR and Shetab payment networks, facilitating cross-border transactions for businesses, students, and tourists.
What’s next:
Russia is negotiating gas transit via Iran and acquiring 50,000 hectares for the Rasht-Astara railway, a critical segment of the North-South Corridor.
The International North–South Transport Corridor (INSTC) is one of the most important joint projects between the two countries.
INSTC is a 7,200-km (4,500-mile) long multi-mode network of ship, rail, and road routes for moving freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
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