Russia, Iran, Iraq To Extend INSTC Rail Network To Baghdad

Russia, Iran and Iraq will form a working group for the joint development of the International North-South Transport Corridor (INSTC), Russian Energy Minister Sergei Tsivilev stated after a meeting of the Russia-Iraq Intergovernmental Commission for Trade, Economic, Scientific and Technical Cooperation.

Tsivilev, the Commission Co-Chair, said that “There was a proposal from the Iraqi prime minister to extend the INSTC corridor jointly with Iran, and with Iraq and Russia. We support this proposal. Therefore, we’ll form a joint working group and will work out the continuation through these two countries.”

The Russian Transport Minister, Roman Starovoit, said during a visit to Tehran last week that Russia and Iran have signed an agreement for completion of the Rasht-Astara railway section project in Iran as part of the North-South international transport corridor. That will additionally smooth the way for seamless rail traffic between Russia, Azerbaijan, Iran and India into Iraq, and vice-versa.

Baghdad is actively working to deepen its trade relations with neighbouring countries such as Turkiye, Jordan, and Iran, focusing on sectors including energy, agriculture, and manufacturing. These bilateral agreements are expected to boost cross-border trade and investment.

With a population of around 46 million, Iraq’s GDP (PPP) stands at US$655.42 billion, with a GDP growth rate expected of 4.1% for 2025. The GDP per capita (PPP) is US$11,421.08.

Russia’s bilateral trade turnover with Iraq has fluctuated in recent years, but rebounded to approximately US$500 million in 2024. Russia increased its exports to Iraq 27.8% last year, with the majority of shipments consisting of food products, wood, and pulp-and-paper goods. However there are also significant Russia’s investments in Iraq’s energy sector are also significant, totalling more than $19bn in 2024. Lukoil, Gazprom Neft and Rosneft account for the bulk of capital investments. The country ranks fifth in the world in terms of oil reserves and twelfth in terms of gas reserves.