Russia, Iran, and Azerbaijan strike deal to ease trade

Moscow, Tehran and Baku have signed a memorandum on facilitating the transit of goods, the Russian trade mission in Iran announced in a statement published on its Telegram channel on Monday.

“A memorandum between Russia, Iran and Azerbaijan on the facilitation of transit transportation was signed in Tehran on August 22. This document should contribute to the simplification and acceleration of customs procedures for foreign trade participants,” the statement reads.

Currently, the main overland route for cargo transit from Iran to Russia passes through Azerbaijan. This is a part of the so-called International North-South Transport Corridor, a 7,200-kilometer-long multi-mode transit system that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.

Though the corridor existed back in Soviet times, developing it further has taken on newfound importance in light of the fact that Western sanctions have forced Russia to shift its trade routes from Europe to Asia and the Middle East.

Russian Deputy Prime Minister Alexander Novak said in May that trade turnover between Iran and Russia soared by 81% last year, reaching almost $4 billion. In the first quarter of 2022, volumes continued to grow, jumping by more than 10% from the previous quarter.

For more stories on economy & finance visit RT's business section