Iran And Russia Build Railway Link Defying Sanctions, A Move That Could Redefine Global Trade Routes

International News:  Iran and Russia are facing heavy sanctions and political pressure. Now, these two countries are building something that even the US and Europe will be unable to stop. They are constructing a 162-kilometer railway line that could completely transform global trade. This is not just a simple construction project; it is a missing part of the International North-South Transport Corridor (INSTC), a massive 7,200-kilometer trade network. 

Its aim is to reduce transportation costs by 30% and delivery times from 37 days to just 19. This means that goods can be transported through it almost twice as fast as through the normal Suez Canal route. For Russia and Iran, this project could prove to be a major step towards economic independence.

 Russia is financing this project

The railway, primarily financed by Russia and costing approximately €1.6 billion, is being built by Russian engineers. It is part of a 20-year Strategic Partnership Agreement signed between the two countries in January 2025. This project demonstrates that their cooperation is more than just friendly. It is a direct challenge to Western dominance in global trade. Analysts say the line will also strengthen Russia’s influence in Asia. For Iran, this partnership opens doors to long-term economic survival despite sanctions.

Cargo transport allowed up to 20 million tonnes per year

When completed, this railway line will allow the transportation of up to 20 million tons of cargo annually. Most importantly, it will transport vital goods such as oil, gas, steel, food, and machinery through routes that Western countries cannot easily control. Unlike sea routes like the Suez Canal or the Strait of Malacca, this land route cannot be easily blocked or restricted. Experts believe the project will reduce transport costs significantly. Local businesses along the corridor are also expected to benefit from the steady flow of goods.

New Trade Axis Shaping World?

China is also showing significant interest in this, as the INSTC connects to its Belt and Road Initiative. Together, this could create a vast trade network stretching from the South China Sea to Europe. This cooperation between China, Russia, Iran, and other countries of the BRICS and Shanghai Cooperation Organization signals the emergence of a new global power balance. Some scholars call it the beginning of a multipolar world order. Others warn it could deepen divisions with the West even further.