Vienna, Austria (Ports Europe) June 20, 2022 – Last week, Iran and Russia signed a Memorandum of Understanding (MoU) for the establishment of mutual trade centres. Initially, centres will be established in St. Petersburg in Russian and the Iranian capital of Tehran.
The new centres will be dedicated to increasing trade between the two countries using the North-South International Transport Corridor (INSTC). INSTC is a multi modal transportation established in 2000 for the purpose of promoting transportation cooperation among the member states. It connects India Ocean and Persian Gulf to the Caspian Sea via Iran, and is then connected to Saint Petersburg in Russia. The transport corridor is a 7,200-km, multi-modal network of ship, rail, and road cargo route.
The corridor improves trade connectivity between Moscow, Astrakhan, Baku, Tehran, Bandar Anzali, Bandar Abbas, Mumbai, and other locations along the route. It offers lower transportation costs, such as port and customs fees, and reduces transporters’ waiting time.
The move is an attempt to by-pass international trade sanctions.
Copyright (C) Ports Europe. All Rights Reserved. 2022.