WANA (Aug 25) – U.S. pressure on India to scale back ties with Russia has produced unintended consequences: New Delhi and Moscow are deepening cooperation, with Iran emerging as a pivotal player in their shared strategy.

 

Indian Foreign Minister Subrahmanyam Jaishankar visited Moscow this week to meet President Vladimir Putin, underscoring India’s intent to strengthen ties with Russia despite Washington’s efforts to isolate Moscow. The talks placed special emphasis on advancing the International North-South Transport Corridor (INSTC), a trade route where Iran holds an indispensable position.

 

Iran at the Heart of the INSTC

The INSTC, first signed in 2000, is designed to move goods from India to Europe through Iran and Russia, offering a faster and cheaper alternative to the Suez Canal. Over the years, the project has expanded to include 14 member countries, linking multiple national transport systems into a cohesive trade network.

 

Recent agreements between Iran and Russia, particularly on completing the missing Rasht–Astara rail link, have further cemented Iran’s role as the central hub of this corridor. The INSTC already operates through eastern, central (via the Caspian Sea), and western routes, but the full integration of Iran’s infrastructure could turn the country into a regional and Eurasian transit hub.

 

Trade Growth Despite Sanctions Pressure

At the Moscow meeting, Russian Deputy Prime Minister Denis Manturov highlighted that trade between India and Russia has grown nearly sevenfold in the past five years. He also noted that over 90% of transactions are now settled in national currencies, reflecting both countries’ determination to reduce reliance on the U.S. dollar.

 

This economic resilience comes at a time when Washington has been pressuring New Delhi with tariff measures and diplomatic warnings. Instead of retreating, India has intensified engagement with Russia, viewing the INSTC as a strategic alternative.

 

Strategic Implications

Experts believe the corridor is not just a transportation route but also a platform for international economic cooperation and a powerful geopolitical lever. Karim Naeini, a transit analyst, explained that since U.S. President Donald Trump initiated tariff wars against countries with trade imbalances, global supply chains have begun shifting.

 

He noted that Russia and Central Asian states, as major suppliers of raw materials and energy, are positioned to play an outsized role — with Iran serving as the connecting bridge.

 

According to Naeini, by aligning itself with these economic blocs and leveraging the INSTC, Iran can secure its economic future for decades and solidify its place in the emerging global order.

 

Looking Ahead

With India and Russia drawing closer under U.S. pressure, the INSTC’s commercial prospects are expanding. For Iran, this represents both an economic opportunity and a geopolitical upgrade: transforming from a participant into the beating heart of a transcontinental trade network linking South Asia, Eurasia, and Europe.

Wana - North-South Corridor

North-South Corridor. Social media/ WANA News Agency