North-South ITC gains momentum with Russia-Azerbaijan pact

The Russian government has approved a draft agreement with Azerbaijan to jointly enhance transit freight traffic along the North-South International Transport Corridor (ITC).

The decision was formalized through an order by Russian Prime Minister Mikhail Mishustin, Caliber.Az reports, citing Russian media.

The agreement aims to strengthen transport links and boost the potential of the corridor’s western route. Both countries will ensure the free movement of goods across their territories in compliance with the agreement’s provisions and domestic laws. Customs control will align with the agreement, national legislation, and international treaties involving Russia and Azerbaijan.

The deal also sets a guaranteed annual cargo volume for transport from Russia to Azerbaijan. Starting January 1, 2028, the minimum volume will be 5 million tonnes, with a planned increase to 15 million tonnes per year following necessary infrastructure upgrades. Failure to meet the declared cargo volume will result in compensation payments from Russian Railways to Azerbaijan Railways CJSC or vice versa if Azerbaijan declines the agreed cargo.

The North-South ITC spans approximately 7,200 kilometres, connecting the Russian seaport of St. Petersburg to Mumbai, a major port on India’s west coast. It includes railways, sea routes, and highways across Russia, Azerbaijan, Iran, and other countries in the region.

Initially formalized in 2000 through an agreement between Russia, Iran, and India, the ITC has since grown to include Oman, Azerbaijan, Armenia, Belarus, Kazakhstan, Syria, Türkiye, Tajikistan, and Kyrgyzstan. The corridor integrates maritime routes from India to Iranian ports, rail networks through Russia and Azerbaijan, and Caspian Sea routes.

Significant progress includes the July 2022 dispatch of the first commercial cargo via the ITC and a 2023 agreement to construct the Resht-Astara railway in Iran. This 162-kilometer section, expected to be completed by 2025, is the last unfinished portion of the corridor’s western route.

By Tamilla Hasanova