As the Suez Canal is strained by crises and rising costs, Russia and Iran are promoting a strategic trade corridor that aims to reshape the map of Eurasian transport, with full operation targeted before the end of the decade.
The Eurasian Economic Union (EAEU) and Iran plan to address issues related to the development of the International North–South Transport Corridor, Arzybek Kozhoshev, Minister of Energy and Infrastructure of the Eurasian Economic Commission, told Izvestia.
According to him, the route is gaining particular importance amid the problems facing the Suez Canal and the increase in transport costs.
“The Suez Canal is currently facing serious problems and prices have risen. For this reason, the North–South corridor is an extremely important issue and will continue to develop.
I believe that together with our Iranian colleagues we will resolve many issues, including multimodal routes, railways and tariffs.
At present, negotiations are at an early stage,” Arzybek Kozhoshev said.
In his view, Iran plans in the future to fully join the EAEU*.
Today, Tehran holds observer status in the organization.
It is worth noting that a full free trade agreement between Iran and the Union entered into force in May, replacing the interim agreement that had been in place since 2019.
The obstacles
However, even after the free trade agreement came into force, several “bottlenecks” remain, related to differences in national standards, overlapping inspection procedures and the absence of a unified digital framework for cargo tracking.
These factors slow down border crossings and reduce part of the corridor’s economic advantages, political scientist and lecturer at the RUDN University School of Economics Farhad Ibragimov told Izvestia.
Despite the fact that disagreements between the EAEU and Iran persist, mainly due to bureaucratic aspects of the process, both Tehran and the Union’s member states are interested in removing barriers and shaping a broader Eurasian economic space, regional expert and program adviser at the PIR Center Leonid Tsukanov told Izvestia.
“Based on the current trend, one can expect that most issues will be resolved within the next three to four years,” he estimated.
According to Farhad Ibragimov, the International North–South Transport Corridor could reach full operational capacity in the medium term, around 2027–2029.
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The Eurasian Economic Union (EAEU) is an economic union of Eurasian countries that promotes the free movement of goods, services and labor and coordinates policies in key areas, aiming to increase the competitiveness of national economies, strengthen cooperation and raise living standards.
Its members are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, and the union was launched on January 1, 2015.
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