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Russia and Iran likely to complete direct rail route

Thursday, December 1, 2022

Significance

Sanctions have constrained east-west transit through Russia and revived its interest in north-south connections to Gulf ports and India. Moscow and Tehran, each keen to circumvent Western trade embargoes, are talking about completing railway sections needed to make the INSTC a continuous route.

Impacts

  • Georgia will double down on promoting the west-east 'Middle Corridor' from Turkey to China.
  • Azerbaijan is likely to secure Armenian agreement to a western corridor connecting it with Nakhichevan and Turkey.
  • Armenia will try to promote itself as a possible trade corridor, despite difficult relations with Azerbaijan and Turkey.

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