Future of global economy belongs to SCO, BRICS: Iran Econ Minister

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Iranian Minister of Economic Affairs Ehsan Khandozi told Sputnik that Tehran appreciates the importance of developing cooperation with the Shanghai Cooperation Organisation (SCO) and BRICS, as the regional blocs will play a key role in the global economy in the coming decades.
 
Khandozi said that "regional agreements, specifically with such important regional partners as SCO and BRICS, are what the world economy will be promoting on the shoulders of these economic giants in the nearest decades." 
 
Tehran signed a memorandum of commitment for full SCO membership in September 2022. The Iranian parliament voted to back the country's accession to the organization in November. in accordance with SCO procedures, for Iran to acquire a full membership, the memorandum needs to be approved by all SCO member states.
 
The SCO, founded in 2001, is an international organization whose full members include Russia, China, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The SCO also has Afghanistan, Belarus, Iran, and Mongolia as observer states, while Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka, Qatar, Saudi Arabia, Egypt, and Turkey are partner countries. 

On the other hand, BRICS unites the world's largest developing economies, Brazil, Russia, India, China, and South Africa. A number of them plan to join the economic bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt.

Read next: Iran expresses readiness to help BRICS reach goals

Last year, a spokesperson revealed that Iran has applied to join the group of five major emerging economies: Brazil, Russia, India, China, and South Africa.

BRICS members account for 30% of global gross output and 40% of the global population, according to the spokesperson. He expressed hope that Iran's BRICS membership would result in "added values" for both sides.

Iran hopes North-South Corridor completed before 2025 

Iranian Minister of Economic Affairs Ehsan Khandozi told Sputnik that Tehran wants to see the International North-South Transport Corridor (INSTC) completed and operational before 2025.

"We hope to witness the 'North-South' corridor project completed and railroads opened before the current Iranian government's terms in office are expired," Khandozi said.

The current Iranian government, led by President Ebrahim Raisi, has been in power since 2021. It is slated to conclude in 2025 after serving a four-year term, with the possibility of a second term.

The North-South Corridor is an international multi-mode network nearly 7,200 kilometers long connecting St. Petersburg, Russia, and Mumbai, India. 

The corridor offers a different option than using the Suez Canal to connect the nations of Europe, the Gulf, and the Indian Ocean by water. Three ITC routes exist: the Trans-Caspian (utilizing ports and railroads), the Western, and the Eastern (land routes).

The Astara-Rasht section of the INSTC project, which was started in 2002 by a trilateral agreement between Russia, Iran, and India, is still unfinished. An intergovernmental agreement on the building of the final phase was in the works, it was revealed on March 17 by Russia, Azerbaijan, and Iran. 

This year should see the signing of the contract. The first shipment from Russia to India via the eastern arm of the corridor was successfully carried out, according to a July 2022 announcement from the Russian corporation RZD.