Russia, Iran, and Azerbaijan set agenda for expanding North-South trade routes Experts discuss key aspects of transit corridor

On January 28, a meeting will be held in Moscow between the transport ministers of Iran, Azerbaijan, and Russia to discuss the development of the North-South international transport corridor. This meeting is expected to be more than a mere formality, especially considering it follows closely after the signing of a strategic partnership agreement between Russia and Iran.

What aspects of transport cooperation will the ministers focus on? Will Tehran reconsider its position on the Zangezur Corridor in light of increasing pressure in the Middle East? These questions were addressed by Caliber.Az correspondent to Russian experts.

According to political analyst and publicist Ruslan Safarov, this meeting is largely influenced by the recently signed strategic partnership agreement between Moscow and Tehran.

“This agreement has been in the works for some time, and most of the economic provisions have been carefully considered, so the economic cooperation outlined in it is very concrete. That’s the first point.

Secondly, involving Azerbaijan in this project is absolutely logical. Why? Because it offers the shortest route for the North-South corridor. Everything else is, so to speak, a geopolitical game. Of course, this transit could have been carried out through Central Asia, but that would be slower and less cost-effective,” noted the political analyst.

In his view, Azerbaijan has supported the idea of the North-South corridor. This is the first aspect.

“The second aspect and question is whether the Zangezur Corridor will be discussed in the framework of this cooperation in the near future. I suspect that this issue might come up during the meeting, but most likely behind closed doors, as this corridor is not critical to the construction of the North-South corridor or the logistics partnership between our three countries.

However, it’s clear that the Zangezur Corridor is one of the effective branches of the North-South route and could lead to its expansion and the involvement of new countries in the project. Over time, this could potentially facilitate the launch of railway connections between Russia and Georgia, then into Armenia, from Armenia to Nakhchivan, and from Nakhchivan to Iran’s Julfa. But I still don’t think that the Zangezur issue will play a key role at this meeting, unless Azerbaijan somehow prioritizes it. As far as I understand, Moscow and Tehran have reached a certain consensus on this issue. The consensus is that the Zangezur Corridor is necessary and obvious, but it should not have extraterritorial status. In other words, there should be an Armenian customs checkpoint at the entry and exit points to Armenia. Apart from that, Baku, Moscow, and Tehran’s positions align. However, the issue is more delicate and complex than it may seem in the context of transport commissions. So, most likely, it will require more extensive behind-the-scenes discussions,” emphasized the political analyst.

In his opinion, the new cooperation agreement between Russia and Iran has given a further boost to the implementation of logistical tasks, particularly for Iran. Both Russia and Azerbaijan have essentially fulfilled their commitments regarding the launch of the North-South corridor. Now, all eyes are on Iran, which is focused on completing its section of the corridor from Rasht to Astara.

“Judging by the news and the cooperation between Azerbaijan and Iran, the work on the Rasht-Astara section is progressing much more dynamically compared to previous years. Recently, on January 22, Azerbaijan and Iran signed key agreements on transport and trade development, which will expedite the completion of the North-South corridor. During the 16th session of the Joint Economic Commission between Azerbaijan and Iran, Iran’s Minister of Roads and Urban Development, Farzan Sadig, stated that the North-South corridor is one of the country’s most important transit routes, with the Rasht-Astara section playing a pivotal role. We hope this momentum will continue, as it is in the interest of all three countries,” emphasized Safarov.

According to Eurasia expert and economist Alexander Razuvaev, Russia has entered an era where it is now fully integrated into the Eastern sphere, much like Iran, Türkiye, and Azerbaijan. In this context, trade with these countries, as well as with India, has become crucial.

“The North-South corridor is more than just important. The key agenda of the meeting will primarily focus on creating effective mechanisms that will allow the corridor’s transit capacity to be expanded. The goal of the project participants is to reach 15 million tons of cargo per year.

Moscow, Baku, and Tehran have reached a full agreement on improving the North-South Transport Corridor (MTC) — a crucial route for the development of logistics, not only in the region but also at the international level. This development underscores the importance of Azerbaijan’s role for Russia and its status as a reliable cargo transit country. In addition to other aspects, Azerbaijan stands to gain additional revenue from transit operations.

I believe that the North-South corridor, within the framework of Russian-Azerbaijani cooperation, will ultimately lead to the establishment of the Zangezur Corridor. The implementation of this project was defined in November 2020, right after Azerbaijan’s victory. Naturally, the transportation route from one part of Azerbaijan to another must be swift and seamless, as should the movement of goods.

For Türkiye, the Zangezur Corridor represents a major breakthrough. It will grant Türkiye access to the Russian market and the markets of Central Asia. In general, economic cooperation between the leading countries of Eurasia is a positive development. In today’s world, economic growth is a top priority, and large-scale projects like this tend to benefit all participating nations. In this case, Russia, Iran, and Azerbaijan stand to gain,” concluded Razuvaev.