Russia Develops New Trade, Financial Routes to Bypass Western Sanctions
Disruptions in conventional maritime routes across the Mediterranean, Black Sea, and Baltic Sea due to geopolitical tensions are prompting Moscow to shift trade focus toward markets in the Middle East and Asia.
Central to this strategy is the INSTC, a 7,200-kilometer (4,500-mile) network of sea, rail, and road links connecting Russia to India via Iran. Seen as a substitute for the Suez Canal, the corridor shortens transit distances by about 40%, cutting shipping time from 45 days to under 25 days.
With financial support from Russia, Iran is working to finish missing railway segments and upgrade Caspian Sea ports, a move expected to lower container transport costs by roughly 30%. Reports indicate that around 30 million tons of cargo passed through the INSTC last year, with the official goal set at 45 million tons annually by 2030.
On the financial front, Russia is developing a digital payment system to shield its trade from Western oversight and the SWIFT network. The BRICS Bridge connects the central bank digital currencies of the BRICS bloc members, which include Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa, and the United Arab Emirates.
The blockchain-driven platform has reached an advanced pilot stage, enabling controlled transactions between Russia, China, the United Arab Emirates, and Iran.
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