Stories
Putin Backs India Trade, Offers Funds for North-South Corridor Amid Western Isolation
- •Russian President Vladimir Putin emphasized the International North-South Transport Corridor (INSTC) at the Valdai Forum, seeking stronger ties with Asian partners like India amidst Western isolation.
- •Putin confirmed Russia's readiness to provide credit resources for the INSTC, highlighting the need for Iran to complete its part of the work and Azerbaijan's agreement for the corridor to pass through its territory.
- •The INSTC is a multimodal transportation route connecting South Asia to Europe via ship, rail, and road through Central Asia, the Caucasus, and Russia, with India, Iran, and Russia signing an agreement in 2001.
- •Putin hinted at significant economic cooperation potential with India beyond logistics, without providing further details.
- •The INSTC project, which saw its first commercial consignment in July 2022, is crucial for India to expand trade and investment links with Eurasia, despite geopolitical complexities involving Russia's conflict with Ukraine and Iran's tensions with the US and Israel.
Key Questions Answered
The International North-South Transport Corridor is a multimodal route for moving freight from South Asia to Europe through Central Asia, the Caucasus, and Russia. It involves shipping goods from India to Iran, transporting them across the Caspian Sea or via truck/rail to Southern Russia, and continuing along the Volga River through Moscow to Northern Europe.
According to Russian President Vladimir Putin, Russia is ready to provide credit resources for the corridor, but Iranian partners must first complete their part of the work. Meanwhile, Azerbaijan is already in agreement and has no problems with the route passing through its territory.
An agreement to develop the International North-South Transport Corridor was originally signed by Russia, Iran, and India back in 2001.
