Russian Foreign Minister Sergey Lavrov announced on Monday that Moscow and Tehran will complete work on an all-encompassing inter-state agreement in the near future, signifying the swift development of relations between the two countries. Lavrov mentioned several bilateral projects currently underway, including the International North-South Transport Corridor (INSTC), which aims to significantly reduce travel time and transportation costs by connecting ship, rail, and road routes for cargo movement between India, Iran, Azerbaijan, Central Asia, Russia, and Europe. The INSTC’s construction started in the early 2000s but has gained new momentum due to Western sanctions that have compelled Russia to shift its trade routes toward Asia and the Middle East.
Moscow and Tehran are also working together on other projects like the Bushehr nuclear power plant in Iran and joint investment initiatives. The Russian foreign minister emphasized the increasing growth of trade turnover and investment volumes between the two countries, which reflects their close energy and trade ties despite being under Western sanctions. In June 2023, Russian energy company Gazprom signed a strategic memorandum with Iran for pipeline gas supplies to the Islamic Republic, while in 2022, Russian Deputy Prime Minister Aleksandr Novak announced a $40 billion energy deal with Iran and an agreement to swap supplies of oil and natural gas. Furthermore, Iran became a full member of the Russia-led Shanghai Cooperation Organization (SCO) in July 2023, which promotes multilateral cooperation among its member states.