MOSCOW. May 17 (Interfax) - The Rasht-Astara railroad will help transport food to Gulf and African countries, Russian President Vladimir Putin said.
"It is planned that the new road, in particular, will be used to transport food and other agricultural products to consumers in both Iran and countries of the Persian Gulf and Africa. Thus, this transport corridor will make a palpable, noticeable and practical contribution to ensuring global food security," Russian President Vladimir Putin said in his video address at the signing ceremony for the Russian-Iranian agreement on jointly financing the design, construction and delivery of goods and services for the Rasht-Astara railroad in Iran on Wednesday. The road will be part of the transportation network along the North-South international transport corridor.
The economic benefit to be obtained from this railroad for both countries is obvious, Putin said.
"The income received from transporting goods via the North-South corridor and the more intensive use of ports in our countries [will] clearly stimulate the establishment and growth of corresponding types of business," he said.
This will require the formation of large logistical and manufacturing nodes, which will create jobs and make Russian and Iranian regions more attractive to investors, Putin said.
"The implementation of the Rasht-Astara project is just the beginning of the progressive increase in the capacities of railroad lines in the North-South corridor. [...] Interaction in the establishment of this corridor is developing in close partnership with Azerbaijan. We are hoping for the soonest possible completion of the draft in the trilateral format, with Azerbaijan's participation, of an agreement on cooperation in developing railroad infrastructure and cargo transportation via the North-South route," Putin said.
This will establish the required legislative basis for further successful coordination between the three countries, he said.
In turn, Iranian President Ebrahim Raisi noted Iran's transit significance. "Iran has great potential despite the fact that the collective West seeks to bypass Iranian territory in transit matters. We understand that. But the Russian president and the leaders of any other countries friendly to Iran are perfectly aware of the fact that Iranian territory is the most advantageous from the point of view of the promotion and transit of goods," Raisi said.
"The geopolitical location of Iran can fill the gaps that formerly existed [in transit]. It is a promising project, especially as it involves Russian colleagues who have joined it to the fullest," he said.
Earlier on Wednesday, Russia and Iran signed an agreement on jointly financing the design, construction and delivery of goods and services for the Rasht-Astara railroad in Iran. The goal of the North-South international transport corridor is to realize Russia's strategic cooperation with Caspian Sea countries, and to organize transit between Northern and Western Europe and the South Caucasus, the Gulf and South Asia.