Russia Boosts Economic Independence Via New Trade

(MENAFN) Russia is aiming to reinforce its economic autonomy amid extensive Western sanctions by adopting innovative logistical and monetary approaches, including the International North-South Transport Corridor (INSTC) and the BRICS Bridge, as a means to bypass economic isolation.

Growing geopolitical frictions are disrupting conventional shipping lanes across the Mediterranean, Black Sea, and Baltic Sea. Moscow is taking advantage of these developments by redirecting trade flows toward the Middle East and Asia.

Central to this strategic shift is the INSTC, a 7,200-kilometer (4,500-mile) integrated sea, rail, and road network linking Russia with India through Iran. This pathway is considered an alternative to the Suez Canal, decreasing transport distances by roughly 40% and cutting shipping durations from 45 days to fewer than 25 days.

With Russian financial support, Iran is upgrading missing railway connections and modernizing ports along the Caspian Sea. These improvements are projected to lower container transport costs by approximately 30%.

In the previous year, an estimated 30 million tons of cargo moved through the INSTC, while the official annual capacity target is set at 45 million tons by 2030.

Additionally, Russia is advancing its own digital financial infrastructure to shield its commerce from Western oversight and the SWIFT banking system. The BRICS Bridge serves as an alternative payment platform, linking the central bank digital currencies of BRICS member states, which include Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa, and the United Arab Emirates.

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