Iran’s Ministry of Roads and Urban Development (MRUD) International Affairs Office head Amin Tarfa said on Tuesday that land acquisition for the Rasht-Astara railway is expected to be completed by the end of 2025, and Russian contractors can begin work on the project immediately.
Tarfa” Russian contractors already own 35% of the land acquired for the project, Press TV reported.
He said that Russian investment and construction company Caspian Services will be responsible for the construction of the Rasht-Astara railway, adding that the customer for this project will be the Iranian Transport Infrastructure Construction and Development Company (CDTIC), a subsidiary of MRUD.
“The start of construction in early 2026 marks the official start of Russia’s $1.6 billion loan to fund the project,” Tarfa said. He added that the Russian government will disburse funds in stages as the project progresses.
According to Iran’s estimates from January 2025, approximately $75 million will be needed to acquire the railway land.
The financing and construction agreement for the project was signed in May 2023 between former Iranian President Ebrahim Raisi and Russian President Vladimir Putin.
Russia views the 162km-long railway as a key link in the International North-South Transport Corridor (INSTC), a major trade route connecting the Indian Ocean and the Baltic Sea. Some experts believe it could even rival the Suez Canal.
Tarfa also said that Iran would repay the Russian loan over 10 years at an interest rate of 3%.
MNA