Mahdi Saif Tabrizi – Eurasia Affairs Expert
In a decade witnessing fundamental shifts in geoeconomic patterns, Eurasia has emerged as the new center of gravity for trade, energy, and financial innovation. China’s Belt and Road Initiative (BRI) and the International North-South Transport Corridor (INSTC) are two pivotal projects that not only redefine trade routes but also symbolize the rise of a multipolar economic order. Within this context, Tehran-Moscow relations, as one of the main pillars of these transformations, play a strategic role and, with India’s participation, form a powerful triangle for sustainable regional cooperation.
Synergy Instead of Competition
The North-South Corridor and China’s Belt and Road Initiative are often viewed as competing routes, but recent developments suggest strong potential for synergy between them. The North-South Corridor, approximately 7,200 kilometers long, is a multimodal route spanning sea, rail, and road from Mumbai, India, to St. Petersburg, Russia, passing through Iran as the most crucial link between the world’s north and south. This corridor reduces transportation time by up to 40% and costs by up to 30% compared to traditional maritime routes like the Suez Canal, which has gained added importance amid the geopolitical disruptions of recent years.
Recent progress in the North-South Corridor across various domains has been remarkable. In December 2024, Iran and Russia agreed to accelerate the development of this strategic corridor, including the completion of key infrastructure such as the Rasht-Astara railway. The executive contract for constructing the 162-kilometer railway line was signed in July 2023. By the end of 2025, Pakistan will officially join the North-South Corridor, with the first freight train having traveled from Karachi to Zahedan. However, challenges such as infrastructure gaps in Central Asia persist, though they are being addressed through joint efforts. This corridor not only facilitates trade but also, by connecting emerging economies, creates sustainable job opportunities for countries in the region and enhances the welfare of local communities.
In contrast, China’s Belt and Road Initiative, with its massive investments, has connected over 150 countries and, in the first half of 2025, set records with $66.2 billion in construction contracts and $57.1 billion in investments. This initiative, which reached $122 billion in 2024 with 27% growth, focuses on the world’s east-west axis and advances projects such as the China-Kyrgyzstan-Uzbekistan (CKU) railway. The overlap between the North-South Corridor and the Belt and Road Initiative in regions such as Central Asia creates extensive opportunities across various fields. For example, Iran’s Chabahar Port under the North-South Corridor framework can link with Pakistan’s Gwadar Port under the Belt and Road Initiative, forming an efficient network for Eurasian trade.
A notable aspect of this synergy is Tehran-Moscow relations, which can be seen as a model of cooperation based on shared interests. Joint investment in the North-South Corridor not only reduces reliance on high-risk maritime routes but also, by focusing on mutual benefits, promotes an inclusive development model. Completing the North-South Corridor by 2026 or 2027 could increase trade volume to over 30 million tons per year and solidify Iran’s position as the key bridge between south and north.
A Powerful Triangle Focused on Trade Volume
Energy and infrastructure cooperation among Iran, Russia, and India has reached unprecedented levels in terms of trade volume, despite Western sanctions. Tehran-Moscow relations, with the signing of the Comprehensive Strategic Partnership Agreement in January 2025 and its implementation in Mehr (September/October), have provided a framework for long-term cooperation. Iran-Russia bilateral trade in 2024-2025 reached around $5 billion, and more precise statistics show Iran’s non-oil exports to Russia increased to $2.1 billion by the end of that year. These figures grew by 35% in the spring and summer months. Non-hydrocarbon trade volume in the first six months of 2025 reached 87.2 million tons, including exchanges of gas, oil, turbines, and other items. This growth is the result of implementing the free trade agreement with the Eurasian Economic Union (EAEU), which has brought reduced logistics costs and increased market access.
India also plays a pivotal role in this triangle. Russia-India trade in the 2024-2025 fiscal year reached a record $68.7 billion, seven times the level five years ago, making the goal of $100 billion by 2030, emphasized during the Putin-Modi meeting in New Delhi, realistic. India’s oil imports from Russia, despite U.S. tariffs and sanctions, have saved Delhi $7 billion, with monthly oil import volume reaching $4.7 billion in June 2025.
Iran-India bilateral trade has also shown an upward trend. Iran’s non-oil exports to India reached $1.8 billion by mid-2025, and India recorded a trade surplus of $760 million in the 2024-2025 fiscal year. The total bilateral trade between Tehran and Delhi reached about $2 billion by late 2025, with a focus on goods such as agricultural products and technology.
The infrastructure of the North-South Corridor, with a $1.6 billion loan from Russia and India’s investment in Chabahar Port, has created the capacity to increase trade volume to 30 million tons. In the tripartite Tehran-Moscow-Delhi cooperation, the human dimension can also be considered, including reducing price fluctuations, creating employment, and protecting communities from global crises. Western sanctions have led to innovations such as barter and the use of national currencies, turning this triangle into a model for equitable partnership.
Digitization of Trade
The digitization of regional trade, focusing on alternatives to the SWIFT system, returns power to communities and creates independent and efficient structures. After leaving SWIFT in 2018, Iran joined Russia’s Financial Message Transfer System (SPFS) and China’s Cross-Border Interbank Payment System (CIPS), facilitating cross-border transactions for over 700 banks. In CIPS, over $12 trillion is processed annually, providing benefits such as greater security, higher speed, and lower costs, although it remains smaller than SWIFT in competitive terms.
Russia, India, and Iran, within the BRICS framework, are moving toward launching the BRICS Pay system – a decentralized blockchain-based system that reduces reliance on the dollar and SWIFT. Iran, as a new BRICS member since 2024, along with Russia and India as founding members, emphasized the creation of this system at the 2025 summit. The advantages of BRICS Pay include facilitating transactions, reducing sanction risks, expanding trade in local currencies, and strengthening dedollarization in payment settlements, which could reduce costs by up to 30%. The implementation of the Tehran-Moscow trade treaty in Mehr has doubled the number of ruble-rial settlements and strengthened bilateral trade. India, focusing on the rupee, also utilizes this system for energy imports.
These developments have turned sanctions into an opportunity for innovation and expanded trade among these three countries. With the development of fintech in free zones, Iran has the potential to become Central Asia’s digital bridge, providing economic stability and equal access for small businesses.
Conclusion
The new economic geography of Eurasia offers a clear picture of synergy, resilience, and innovation. The North-South Corridor and the Belt and Road Initiative, with their technical details and recent progress, have opened new paths for regional and global trade. The trade volume among Iran, Russia, and the Moscow-Delhi axis reflects the immense potential of this convergence in Eurasia. Alternative systems such as Russia’s SPFS, China’s CIPS, and BRICS Pay, by reducing costs and dependencies, have outlined a more independent future for the region’s economies.
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