Missile Strike on Iran's Anzali Port: Implications for India-Russia Trade Corridor
Missile Attack on Anzali Port
New Delhi: A missile strike by the United States and Israel has targeted Iran's Anzali Port, a crucial transit hub for the International North-South Transport Corridor (INSTC) that connects Mumbai to St. Petersburg, Russia, over a distance of 7,200 kilometers. India and Russia aim to boost their bilateral trade to $100 billion by 2030 through this corridor. However, experts warn that the missile attack on the Iranian port could hinder this ambitious goal.
The INSTC is designed to bypass the Suez Canal, potentially accelerating trade between Asia and Europe. The missile attack occurred on March 18, damaging customs houses and other structures at the port.
Transit Time Reduced to 7 Days
Renat Karamurza, a professor at Moscow University’s Institute of Asian and African Studies, noted that this route was previously considered secure, but the recent attacks will likely lead to increased insurance and freight rates, negatively impacting Russia and other CIS countries.
Political analyst Sergey Strokon stated during a television debate that this corridor is vital for bilateral relations with India, as it reduces transit time from Moscow to Mumbai from 25-30 days to just 7 days. Russian Deputy Prime Minister Vitaly Savelyev mentioned that by the end of 2025, over 7.5 million tons of cargo are expected to be transported via this route.
What is the Project About?
Under the INSTC, Russia is constructing a railway line that will directly connect to Iranian ports, facilitating easier access to Mumbai. Russia has agreed to provide Iran with a $1.4 billion loan for this project. Goods will take only 10 days to reach Mumbai from St. Petersburg, compared to the current 30 to 45 days.
This corridor is crucial for our bilateral relations with India, as it significantly reduces transit time from Moscow to Mumbai.
Sergey Strokon, Political Analyst, Russia
For centuries, trade with Europe has been vital to Russia's economy, but the Ukraine war has altered this dynamic. Following the conflict, trade with China and India has surged. This railway line is expected to enhance Russia's access to India and China, potentially challenging trade routes through the Suez Canal in the future.
Connecting Russia to India
The new railway line will link Iran's cities of Astara and Rasht, connecting Iran to Azerbaijan in the north and integrating it into the Russian railway grid. The completion of this railway line is anticipated by 2028, stretching a total of 6,920 kilometers. This will provide Russian traders with easier access to India via Iranian ports in the Persian Gulf, as well as facilitate access to Saudi Arabia, the UAE, and Pakistan.