MOSCOW/TEHRAN/BAKU — September 2, 2025. Russia’s transport minister Andrey Nikitin said Russian companies will construct Iran’s Rasht–Astara railway, the long-missing segment of the International North–South Transport Corridor (INSTC). He noted that Iran must finalize the route alignment and begin land acquisition before full-scale works can start.
Signed in 2023, the Russia–Iran agreement covers roughly 160 km of new track on the Iranian side, including associated infrastructure. The project is valued at about €1.6 billion, with joint financing for design, construction, and related supplies and services. The Rasht–Astara link will complete continuous rail connectivity from Russia through Azerbaijan to Iran and onward to Persian Gulf ports.
Earlier this year, Iran’s ambassador in Moscow Kazem Jalali indicated the line could take three to four years to build once major construction is underway.
Why it matters for Azerbaijan
Seamless routing: Rasht–Astara connects directly with the cross-border rail interface at Astara, tying together Russian, Azerbaijani and Iranian networks for end-to-end movements along the INSTC’s western branch.
Freight growth potential: Continuous rail to Gulf ports is expected to lift north–south cargo volumes transiting Azerbaijan, supporting logistics, warehousing and customs services.
Diversification: The route provides shippers with an additional option to traditional east–west or Suez-dependent lanes, reinforcing Azerbaijan’s role as a regional transit hub.
Next steps include Iran’s confirmation of the final alignment, completion of land purchases along the corridor, and conversion of the 2023 framework into full construction contracts before civil works ramp up.
