Russia To Use Trade Routes Through Iran, Arctic To Weaken Western Sanctions
Ever since launching its attack on Ukraine in 2022, Russia has been hit with heavy western sanctions against its banks and its vital energy sector. It s maritime trade, which the majority travels through NATO controlled waters, has also been severely affected. But Moscow is now looking to lessen risks at sea, with new trade routes it’s planning to launch between Europe and Asia. This also comes at a time when turmoil in the Middle East is disrupting global trade.
The shipping and rail networks could link the European part of Russia to India via Iran, while also bringing it closer to its main trade partners in the Asia Pacific. While Moscow says it’s ready to invest more than 25 billion dollars to modernise the International North South Transportation Corridor, it also wants to upgrade facilities on its Arctic shoreline to make the Northern Sea Route more attractive. Last year, the Kremlin also issued a 1.4 billion dollar loan to Iran as a way to expand a rail link which will allow its cargo supplies from St. Petersburg to reach the Gulf. Reports say, the routes could cut at least 30 percent of transit times compared to travelling via the Suez Canal, which has been plagued by Houthi rebel attacks in the Red Sea.
Strait Talk, hosted by Ayse Suberker, is TRT World’s programme that features in-depth analysis of Türkiye’s role in the world.
Guests:
Xin Zhang
Associate Professor at East China Normal University
Ali Ahmadi
Executive Fellow at Geneva Centre for Security Policy
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