 "Amid sanctions from the West, INSTC raises Russian trade volume with India")
The trade volume between India and Russia has increased in the last three months, facilitated by the International North-South Corridor (INSTC). Iran Shipping Lines has transported over 3,000 tonnes of goods and 14 containers between May and July, a report by the Economic Times (ET) said.
This is crucial for Russia, given the plethora of sanctions imposed on the country by the West following its war in Ukraine.
The Indian government has also been pushing to include the INSTC with the Chabahar Port. The government considers it a way to connect with Russia and Europe.
Russian President Vladimir Putin, in July, stated that INSTC is crucial in forming connectivity between India and Russia. He called it a "transport artery from St Petersburg to ports in Iran and India" at the 6th Caspian Sea Summit in July.
The report further stated that INSTC could be an alternative to the Suez Canal and the Bosporus Strait in the long run. It can also challenge China's ambitious Belt and Road Initiative (BRI).
BRI aims to connect China with Europe through Central Asia countries like Turkey and Iran. India, however, has been a vocal critic of the project because it passes through the contentious region of PoK.
INSTC, on the other hand, connects the Indian Ocean to the Caspian Sea via the Persian Gulf. It reduces the transport time between Russia and India to 25 days from around 40 days earlier.
Established in 2000, INSTC is a 7,200 km long transportation network ratified by 13 countries, viz, Azerbaijan, Belarus, Bulgaria, Armenia, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Turkey, and Ukraine.
It encompasses sea, road and rail routes. The corridor, besides improving trade with Russia, will also help India provide humanitarian aid to Afghanistan.
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