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Epoch Times
26-05-2025
- Business
- Epoch Times
Russia's Emerging North-South Transit Route to Link St. Petersburg to Indian Ocean
Earlier this month, Russian and Iranian engineers began survey work for the planned construction of a railway line linking the Iranian cities of Rasht and Astara along the southwestern coast of the Caspian Sea. According to Russia's transport ministry, the project will involve construction of eight train stations, dozens of bridges, and 100 miles of railway track. 'The potential of the route is obvious,' Russian Transport Minister Roman Starovoit said in a May 16 Once completed, the Rasht-Astara railway line will connect Central Russia, via Azerbaijan, to Iranian ports on the Indian Ocean. 'It will create an uninterrupted rail link between Russia's railway system and the Persian Gulf,' said Stanislav Pritchin, head of the Central Asia desk at Moscow's Institute of World Economy and International Relations. In 2023, when Russia and Iran agreed to jointly develop the Rasht-Astara railway line, Russian President Vladimir Putin said the move would reduce Missing Link The Rasht-Astara line will be the final link of the International North-South Transport Corridor (INSTC), a multimodal transit route that has been in the making for 25 years. Related Story 5/23/2025 Pritchin described the Rasht-Astara line, which he said would take two to three years to complete, as a 'crucial part' of the corridor's burgeoning international rail network. 'Russia and Azerbaijan have finished their respective sections of the north-south corridor,' he said. 'Now, we are waiting for Iran to complete the final link.' Although the final rail link has yet to be built, the north-south corridor as a whole is already handling significant volumes of cargo traffic. According to Russia's transport ministry, total trade volumes along the corridor reached 20 million tons in 2024. 'After the [Rasht-Astara railway] project is implemented, the capacity of the [corridor's] western route alone will be at least 15 million tons of cargo per year,' the ministry said on its Telegram channel. According to Baku's state-owned railway company, ADY, the north-south corridor This figure is expected to rise even further once Iran's Rasht-Astara rail line becomes operational, the ADY said in a January report. Seagulls perch on the shore of the Caspian Sea in Baku, Azerbaijan, on Nov. 10, summer, Putin visited Speaking alongside the Russian leader, Azerbaijani President Ilham Aliyev said the trade corridor's segments in Azerbaijan—both road and rail—were now 'successfully operating.' Geography 'Key Factor' Still a work in progress, the north-south corridor is more than just a railway network. Rather, it is a multimodal transit corridor comprising road, rail, and maritime links. Roughly 4,500 miles in length, the project aims to increase trade connectivity between major population centers, including St. Petersburg and Moscow in Russia, Baku in Azerbaijan, Tehran and Bandar Abbas in Iran, and India's Mumbai. By traversing Russia, Azerbaijan, and Iran, the north-south corridor represents the shortest route between Europe and India. 'That's its main advantage,' Pritchin said. Mamuka Tsereteli, a senior fellow at the Central Asia-Caucasus Institute at the American Foreign Policy Council, also said that geography was the 'key factor' at play. 'The shortest way from India to Northern Europe is via Greater Central Asia, Russia, and Baltic Sea ports,' Tsereteli told The Epoch Times. 'The other benefit is that this route has the potential to become an economic corridor by integrating elements of logistical hubs and redistribution centers, serving markets along the route.' The International North-South Transport Corridor was established through a 2000 agreement between Russia, India, and Iran. It gained momentum with the 2011 Ashgabat Agreement, which sought to develop regional trade routes—including the corridor—between signatory states. Along with Iran and India, signatories of the Ashgabat Agreement include Pakistan, Kazakhstan, Uzbekistan, Turkmenistan, and Oman. Earlier this month, Map of the North-South Transport Corridor trade route from Mumbai, India, compared to the traditional Suez Canal trade route. Public Domain/World Factbook/CIA The north-south corridor currently consists of three main branches: a western branch through Azerbaijan, an eastern branch through Kazakhstan and Turkmenistan, and a central maritime branch that traverses the Caspian Sea. In June last year, two coal-laden trains made the first ever After crossing Kazakhstan and Turkmenistan, they arrived at the Iranian port of Bandar Abbas, where the cargo was offloaded and shipped across the Arabian Sea to India's trade capital and major western port of Mumbai. The following month, Kazakhstan signed an At the time, Kazakhstan's transport ministry said the upgrades would increase trade volumes on the corridor's eastern branch to 20 million tons by 2030. In March of this year, Astana hosted a Kazakhstan–India trade summit, at which further development of the north-south corridor 'We are paying close attention to the ... transport sector,' Sanzhar Ualikhanov, a Kazakh Foreign Ministry official, said at the summit, adding that the north-south corridor now represented 'the primary corridor linking Kazakhstan with India.' Rivaling the Suez Since its inception, the north-south corridor has been touted as a potential alternative to the traditional trade route through the Red Sea and Egypt's Suez Canal. According to Pritchin, however, the corridor will not pose a serious challenge to the maritime route until Iran's Rasht-Astara railway line becomes operational. 'Cargo is already being transported through Iran,' Pritchin said. 'But without this final link in the rail network, the [corridor] will remain too expensive—and too inconvenient—to compete with the Suez Canal.' Tsereteli said the north-south corridor would face difficulties competing with the maritime routes—even in the long term—due to both higher costs and geopolitical considerations. 'Even if shippers have to take a longer route around the Horn of Africa due to the security situation in the Red Sea, it will still be less costly to deliver cargos to most European markets by sea,' he said. Ships sail along Egypt's Suez Canal near Ismailia on April 16, 2025. KHALED DESOUKI/AFP via Getty Images What's more, he added, inter-regional trade via the corridor will face a host of restrictions due to ongoing Western sanctions on both Russia and Iran. 'If there were no geopolitical constraints, free and open connectivity between the Indian subcontinent and Gulf countries and Europe—via Iran, the Caspian region, and Russia—would be a preferred option for producers and traders,' Tsereteli said. 'But sanctions exist and geopolitical realities limit the potential of the INSTC. 'At the same time, the INSTC will face major competition from the India-Middle East-Europe Economic Corridor, which has growing European support and fewer geopolitical challenges.' That ship-to-rail transit network connects Mumbai and Europe through the United Arab Emirates, Saudi Arabia, Jordan, and Israel. Nevertheless, Moscow appears to be moving full steam ahead on the ambitious project. This week, Russia's state-run railway authority RZD said it was mulling plans to extend the north-south corridor into several African 'Given the potential of developing trade with [African] countries, we see prospects for the further ... extension,' RZD deputy head Sergei Pavlov told Russia's Interfax news agency on May 22.
Yahoo
24-02-2025
- Business
- Yahoo
New EU sanctions target airlines operating domestic flights in Russia
By Gleb Stolyarov (Reuters) - The European Union's latest sanctions against Moscow include a ban on third-country airlines flying to the 27-nation bloc if they carry out domestic flights in Russia, the European Commission said on Monday. The EU's 16th sanctions package against Russia includes a ban on primary aluminium imports and the sale of gaming consoles, while also listing a cryptocurrency exchange and dozens of vessels of the so-called shadow fleet used to evade sanctions. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Russian authorities are exploring allowing airlines from other countries to operate domestic flights between Russian airports as a way to deal with a shortage of aircraft caused by Western sanctions. "The package extends the flight ban to enable the listing of third-country carriers conducting domestic flights within Russia or supplying aviation goods to Russian airlines or for domestic flight in Russia," the European Commission said. "If listed, these airlines will not be allowed to fly to the EU." Russia's Ministry of Transport declined to comment on the new EU measures. Last October Russian Transport Minister Roman Starovoit said Moscow was in talks with some Central Asian countries, including Kazakhstan, for their airlines to run domestic flights in Russia. Russian airlines, which mainly use Western aircraft delivered before the war in Ukraine, are struggling to meet the growing demand for air travel as sanctions hinder access to parts and plans to supply domestically made airliners are being constantly postponed.
Reuters
24-02-2025
- Business
- Reuters
New EU sanctions target airlines operating domestic flights in Russia
Feb 24 (Reuters) - The European Union's latest sanctions against Moscow include a ban on third-country airlines flying to the 27-nation bloc if they carry out domestic flights in Russia, the European Commission said, opens new tab on Monday. The EU's 16th sanctions package against Russia includes a ban on primary aluminium imports and the sale of gaming consoles, while also listing a cryptocurrency exchange and dozens of vessels of the so-called shadow fleet used to evade sanctions. Russian authorities are exploring allowing airlines from other countries to operate domestic flights between Russian airports as a way to deal with a shortage of aircraft caused by Western sanctions. "The package extends the flight ban to enable the listing of third-country carriers conducting domestic flights within Russia or supplying aviation goods to Russian airlines or for domestic flight in Russia," the European Commission said. "If listed, these airlines will not be allowed to fly to the EU." Russia's Ministry of Transport declined to comment on the new EU measures. Last October Russian Transport Minister Roman Starovoit said Moscow was in talks with some Central Asian countries, including Kazakhstan, for their airlines to run domestic flights in Russia. Russian airlines, which mainly use Western aircraft delivered before the war in Ukraine, are struggling to meet the growing demand for air travel as sanctions hinder access to parts and plans to supply domestically made airliners are being constantly postponed.
Arab News
28-01-2025
- Politics
- Arab News
Lawsuit says Russian officials stole millions meant to fortify border region attacked by Ukraine
LONDON: Russian prosecutors are seeking to recover nearly $33 million of funds that they say were allocated for the defense of the western Kursk region, invaded by Ukraine last year, but stolen instead by corrupt officials. Ukrainian troops stormed across the border in a surprise attack on Aug. 6 and seized a chunk of Russian territory, some of which they still hold — a valuable bargaining chip for Kyiv in any peace talks with Moscow. A lawsuit filed by the office of Russia's Prosecutor General orders the head of the Kursk Regional Development Corporation, his deputies and a number of businessmen to repay more than 3.2 billion roubles ($32.7 million) allegedly embezzled from the regional defense budget, state news agency RIA reported. In the two years prior to Ukraine's attack, the governor in charge of Kursk at the time had repeatedly told the public that Russia had boosted its fortifications along the region's 150-mile (240 km) border with Ukraine. 'Right now the risk of an armed invasion of the territory of Kursk region from Ukraine is not high,' Roman Starovoit assured residents in November 2022. 'However, we are constantly working to strengthen the region's defense capabilities.' The next month, he posed in a snowy field beside a row of pyramid-shaped anti-tank defenses known as 'dragon's teeth.' But in the autumn of 2023, Ukraine's National Resistance Center, created by the special operations forces, said in an online post that reconnaissance showed 'almost all the strongholds are deserted of personnel and equipment' along the border with Kursk. Corruption was a factor, it said. Vidео published by Ukrainian paratroopers during the early days of the August incursion showed columns of armored vehicles pouring into Kursk through the rows of dragon's teeth. 'ILLEGAL ENRICHMENT' Between 2022 and 2023, some 19.4 billion roubles were pumped from Russia's federal budget to Kursk, according to RIA, to build defenses such as ditches and dragon's teeth. The lawsuit alleges that officials instead funnelled that money into contracts with over a half-dozen companies controlled by several business people. The companies created 'the appearance of performing work on the construction of protective structures and put in place a false scheme of expenses,' it says. The head of the regional development fund and two of his deputies 'used their official position for personal purposes...(and) for their illegal enrichment through the wrongful seizure of budget funds allocated for the protection and strengthening of the country's defense capabilities against enemy invasion.' The trio was arrested and sent to pre-trial detention on corruption charges in December and January, Russian media reported. They face up to 10 years in prison if found guilty. One of the businessmen named in the suit, whose firm carried out construction work in Kursk, was placed in pre-trial detention last week. Reuters was unable to locate lawyers for the detained individuals for comment. 'Everyone who has broken the law should know that there will be no leniency or indulgence for him,' Kursk's acting regional governor Alexander Khinshtein posted on Telegram on Tuesday. 'Especially when it concerns such a vital topic for all Kurskites as the construction of fortifications!'
Yahoo
28-01-2025
- Politics
- Yahoo
Lawsuit says Russian officials stole millions meant to fortify border region attacked by Ukraine
By Lucy Papachristou LONDON (Reuters) - Russian prosecutors are seeking to recover nearly $33 million of funds that they say were allocated for the defence of the western Kursk region, invaded by Ukraine last year, but stolen instead by corrupt officials. Ukrainian troops stormed across the border in a surprise attack on Aug. 6 and seized a chunk of Russian territory, some of which they still hold - a valuable bargaining chip for Kyiv in any peace talks with Moscow. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. A lawsuit filed by the office of Russia's Prosecutor General orders the head of the Kursk Regional Development Corporation, his deputies and a number of businessmen to repay more than 3.2 billion roubles ($32.7 million) allegedly embezzled from the regional defence budget, state news agency RIA reported. In the two years prior to Ukraine's attack, the governor in charge of Kursk at the time had repeatedly told the public that Russia had boosted its fortifications along the region's 150-mile (240 km) border with Ukraine. "Right now the risk of an armed invasion of the territory of Kursk region from Ukraine is not high," Roman Starovoit assured residents in November 2022. "However, we are constantly working to strengthen the region's defence capabilities." The next month, he posed in a snowy field beside a row of pyramid-shaped anti-tank defences known as "dragon's teeth". But in the autumn of 2023, Ukraine's National Resistance Center, created by the special operations forces, said in an online post that reconnaissance showed "almost all the strongholds are deserted of personnel and equipment" along the border with Kursk. Corruption was a factor, it said. Vidео published by Ukrainian paratroopers during the early days of the August incursion showed columns of armoured vehicles pouring into Kursk through the rows of dragon's teeth. 'ILLEGAL ENRICHMENT' Between 2022 and 2023, some 19.4 billion roubles were pumped from Russia's federal budget to Kursk, according to RIA, to build defences such as ditches and dragon's teeth. The lawsuit alleges that officials instead funnelled that money into contracts with over a half-dozen companies controlled by several business people. The companies created "the appearance of performing work on the construction of protective structures and put in place a false scheme of expenses", it says. The head of the regional development fund and two of his deputies "used their official position for personal purposes...(and) for their illegal enrichment through the wrongful seizure of budget funds allocated for the protection and strengthening of the country's defence capabilities against enemy invasion". The trio was arrested and sent to pre-trial detention on corruption charges in December and January, Russian media reported. They face up to 10 years in prison if found guilty. One of the businessmen named in the suit, whose firm carried out construction work in Kursk, was placed in pre-trial detention last week. Reuters was unable to locate lawyers for the detained individuals for comment. "Everyone who has broken the law should know that there will be no leniency or indulgence for him," Kursk's acting regional governor Alexander Khinshtein posted on Telegram on Tuesday. "Especially when it concerns such a vital topic for all Kurskites as the construction of fortifications!" ($1 = 97.8500 roubles) (Reporting and writing by Lucy Papachristou; Editing by Mark Trevelyan and Sharon Singleton)
