Iran is preparing to sign a long-awaited contract with Russia to complete the strategic Rasht-Astara railway, a missing segment of the  International North-South Transport Corridor (INSTC) designed to link the Persian Gulf with Russia and Europe, Minister of Roads and Urban Development Farzaneh Sadeq announced.

According to Sadeq, the agreement with Moscow is expected to be finalized next month. The 162-kilometer rail link, estimated to cost €1.6 billion, will be jointly financed through a €1.3 billion loan from Russia's government. Once completed, the line will create a continuous railway connection from the Iranian port of Bandar Abbas to Russia via Azerbaijan, drastically cutting freight time and costs compared to the Suez Canal route. Iranian officials say land acquisition for the project is nearly complete, and Russian contractors have already begun surveying and preliminary engineering work, with construction expected to begin by year's end.

She added that her recent visits to Azerbaijan and  Pakistan were part of a broader diplomatic effort to boost transportation cooperation with neighboring countries.

"The results of my talks in Baku, which focused on guaranteeing freight and cargo transit through the missing link of the International North-South Transport Corridor, particularly along the Rasht-Astara railroad, have exceeded initial expectations," she said.

Sadeq noted that discussions in Pakistan focused on three priorities: recognizing Iran as the transit intermediary between Pakistan and the Eurasian and Caucasus regions, positioning Pakistan as a connector between China and Iran, and creating a framework to transport Chinese goods through both countries toward European markets.

Developing road and rail infrastructure remains central to Iran's vision of regional development and economic integration, she stressed. "The expansion of road and rail infrastructure plays a crucial role in promoting regional development and enhancing Iran's connectivity with its neighboring countries," Sadeq said.

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The Rasht-Astara project, which includes plans for eight stations, over fifty bridges, and more than thirty overpasses, is considered the most crucial missing link of the INSTC. It will strengthen trade between India, Iran, Russia, and Europe while advancing Eurasian integration efforts that aim to bypass Western-controlled maritime routes.

The Rasht-Astara project has long been viewed as a key element in the INSTC, a route that could significantly reduce transit time and costs compared with traditional maritime trade corridors, further tightening Iran-Russia cooperation in the face of Western sanctions.