Russia and Iran: Sanctions busting in focus during port visit

Astrakhan, Russia (PortSEurope) July 3, 2023 - Russia and Iran, the two most sanctioned countries in the world, continue their attempts to improve cargo transport links across the Caspian Sea where they are two of the five littoral states. This was the focus of the visit of the Consul of Iran in Astrakhan Mehdi Akuchekian to the city’s port, together with the Deputy Minister of Industry, Trade and Energy of the Astrakhan region Mikhail Kabakov. They agreed to increase the turnover between Astrakhan and Iran’s port of Astara as well as to further develop the transit of goods and containers along the International North-South Transport Corridor (INSTC) – a key element in Russia’s efforts to redirect its cargo flow to the southeast of the country, and from there to Iran, India and China. This is a way for Russia to bypass Western sanctions with the help of Tehran. It will also help Iran and Russia to jointly manufacture weapons and munitions and develop military technologies. During the meeting, General Director of Astrakhan Port Anatoly Ulyanov said that the port is ready to accept additional volumes of Iranian cargo. In the January-May period this year, Astrakhan handled 1.3 million tonnes of cargo (+160% compared to the same period of 2022). The port’s cargo capacity is 10-11 million tonnes. Transport corridors Astrakhan region (and its ports of Astrakhan and Olya) is important as the eastern end of the 101 km long Reference - Volga–Don Canal (VCSNC – Volga-Caspian Sea Navigation Canal). It connects the Volga and Don rivers (both in Russia) at their closest points. The canal, together with the lower Volga and the lower Don, provides the most direct (over 800 km long) navigable connection between the Caspian Sea and the world’s oceans via the Azov and Black Seas. The canal has renewed importance for Russian trade. It is now a key link in the INSTC. This is the trade corridor that is set to become Russia’s primary export route to world markets. Astrakhan is also important because it has links with other Caspian Sea states and their ports. Ports such as Makhachkala, Olya, Baku, Aktau, among others, are seen as key to a successful future of regional transport corridors. This includes the Russia-supported International North-South Transport Corridor (INSTC) and the Trans-Caspian International Transport Route (TITR, Middle Corridor) which does not pass through Russian territory. Shrinking Caspian Sea The Caspian Sea started shrinking in the mid-1990s and its level is projected to fall by 9 to 18 metres until the year 2100, according to a study, published in December 2020 in Communications Earth & Environment journal. If scientific projections are correct, if global warming continues or worsens and rivers’ inflow in Caspian continues to decrease, the sea’s surface area will shrink between 23%, with a 9-meter reduction, and by 34% for an 18-meter drop in water level. The Caspian Sea started shrinking in the 1960s, but the problem ended abruptly in 1978, when its water started rising unexpectedly and without a scientific explanation for the phenomenon. This welcome development continued until the mid-1990s when the sea started losing water again. In comparison to other ancient lakes, the Caspian Sea surface temperature has suffered from the fastest rise on record. Ports’ problems A loss of a third of the Caspian Sea surface will deliver a fatal blow to the 12 ports located there and trigger a financial tsunami to the economies of the region. The worst affected will be Aktau and Kuryk as well as the Russian ports of Astrakhan, Makhachkala and Olya. Astara, Bender Anzali, Novshahr (Nowshahr) and Amirabad in Iran, are expected to face problems and would also require huge investments to be able to continue normal operations. The Caspian’s largest and most successful port, Baku in Azerbaijan, will also be heavily affected, as well as the country’s second port of Alat. The new Turkmenbashi (Turkmanbashi) port in Turkmenistan, a $1.5 billion (€1.32 billion) over-ambitious project for a poor and isolated state, will have difficulty continuing to operate (more about its problems here). Caspian Sea The Caspian Sea is the largest (371,000 to 384,400 km²) and most voluminous (78,000 to 78,700 km³) inland body of water in the world. Its physical environment and its floor have oceanic characteristics. The sea lies in an elongated depression between the European and Asian continental plates. Its surface is well below sea level, with a maximum depth of 980 m in the south and a shallow northern half averaging just 5.2 metres. The sea extends more than 1,000 km from north to south, and is bounded by deserts in the north and east, and by grasslands and forests in the west and south. The surface of the world’s largest (salty) lake lying between Europe and Asia has fallen by several centimetres a year since the 1990s, with the rate of water shrinkage set to increase dramatically as global temperatures continue to increase. The Caspian’s low salinity is due to freshwater input. The Volga River contributes up to 82% of the inflow, with the rest supplied by some 130 other rivers, principally the Ural, Kura and Atrek. The withdrawal of Caspian water from the coasts where the ports are located will turn them into stranded assets. This issue is valid for all Caspian Sea littoral states and their ports. More PortSEurope news about the port of Astrakhan More PortSEurope news about the port of Astara Copyright (C) PortSEurope. All Rights Reserved. 2023.

Russia and Iran: Sanctions busting in focus during port visit

All news

New logistic hubs along Kazakhstan’s borders

Ukraine’s missiles attack Azov Sea port of Taganrog

Syria’s navy in Al-Bayda and Latakia ports destroyed

FESCO to start Novorossiysk-Kenya container service

GreenTech conference in Gothenburg, Sweden in April 2025

Our Expert Analysis

Latest Free Reads

Top Ports

Russia and Iran: Sanctions busting in focus during port visit

Share this news:

All news

New logistic hubs along Kazakhstan’s borders

Ukraine’s missiles attack Azov Sea port of Taganrog

Syria’s navy in Al-Bayda and Latakia ports destroyed

FESCO to start Novorossiysk-Kenya container service

GreenTech conference in Gothenburg, Sweden in April 2025

Our Expert Analysis

Latest Free Reads

Top Ports