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Iran Clears Land for RashtAstara Rail Link, Trilateral Partners Move to Start Practical Work

The announcement paves the way for Russia, Azerbaijan and Iran to begin on‑the‑ground work for a shorter overland freight route to Europe while financing and detailed schedules remain unresolved.

Overview

  • Russian Foreign Minister Sergey Lavrov said on July 17 that Iran has completed land allocation for the RashtAstara section, removing a long‑standing legal obstacle to work on the corridor.
  • Lavrov reported that the heads of Russia’s, Azerbaijan’s and Iran’s railway companies met earlier this month to discuss practical steps for beginning construction now that land is available.
  • Officials say practical implementation can begin but specific start dates, detailed engineering plans and funding agreements have not yet been finalized.
  • Project backers present the route as a shorter overland alternative to maritime shipping through the Suez Canal and the Strait of Hormuz because disruptions in the Gulf have increased interest in land links.
  • The North–South corridor was launched by Russia, India and Iran in 2000 and later expanded to 14 countries; Russia and Iran signed a 2023 deal to build RashtAstara with an estimated cost of about €1.6 billion and a reported €1.3 billion Russian loan.