Iran and Russia, finding themselves in a difficult geopolitical situation, today act as strategic partners, despite significant challenges. At a time when Russia is facing financial difficulties associated with military spending and Western sanctions, Tehran sees this as an opportunity to strengthen its influence and position on the world stage.
Russia, which is actively financing the war in Ukraine, is forced to seek new economic partnerships to compensate for losses from reduced trade with the West. According to The Economist, Moscow has spent around $211 billion on the war in Ukraine over the past two years, representing around 10% of the country’s GDP.
In this regard, the Kremlin plans to invest significant funds in the development of infrastructure that will ensure sustainable economic development in conditions of international isolation.
Over the next ten years, Russia intends to allocate $70 billion to create transport routes that will connect it to trading partners in Asia and the Middle East. However, as The Economist notes, weak infrastructure in the east of the country seriously limits export opportunities, forcing Russian goods to travel along more complex and longer routes, such as Black Sea and Baltic ports, as well as the Suez Canal. This circumstance increases Russia’s vulnerability to external pressure, particularly from NATO.
In an attempt to strengthen its trade ties with friendly states and protect them from possible interference, Russia has begun active infrastructure development in cooperation with China and Iran. If earlier Moscow avoided investing in such projects due to the risk of sanctions, today the situation has changed. For example, in 2022 the first railway bridge across the Amur River connecting Russia with China was opened, and last year another such project was approved.
The Economist pays special attention to the development of the International North-South Transport Corridor (INSTC), which is supposed to connect Russia, Azerbaijan and Iran. This project, although approved 20 years ago, remained in the planning stage for a long time. Last year, Russia agreed to finance the construction of a section of the Rasht-Astara railway in Iran, which will create an alternative route for the export of Russian products to countries in the Middle East and South Asia, including India, which remains a major consumer of Russian energy resources.
However, these ambitious plans face significant obstacles. According to The Economist, despite the growth of trade on new routes, their volumes remain insignificant. For example, in 2022, only 8 million tons of cargo were transported by rail to Iran, significantly less than the potential. In addition, a significant part of the journey still depends on road transport, which limits its capacity.
The situation is also complicated by the need for significant financial investments in the modernization of transport infrastructure. In war conditions, Russia faces a shortage of qualified personnel, which slows down the implementation of projects. In addition, sanctions continue to have a negative impact on the development of transport and energy projects. For example, Russia’s largest liquefied gas producer, Novatek, suspended work on the Arctic LNG 2 project due to a shortage of components caused by the withdrawal of Western companies.
All these problems underline that despite efforts to diversify trade ties and strengthen cooperation with countries such as Iran and China, Russia faces serious challenges that complicate its ambitious plans to emerge from economic isolation.
Earlier, Kursor reported that Iran is close to an attack on Israel.
The United States and Israel have taken significant steps to strengthen defenses in the region.
