Iran's trade (excluding crude oil exports) with Caspian Sea littoral states stood at 6.89 million tons worth $3.81 billion in the fiscal 2022-23, registering a 12.78% fall in terms of weight, but a 9.51% rise in value compared with the similar period of last year, respectively, according to the Islamic Republic of Iran Customs Administration.
Russia was Iran’s main trading partner among Caspian states with 4.04 million tons (down 17.79%) worth $2.32 billion (up 3.44%) during the period under review. It was followed by Azerbaijan with 784,380 tons (down 7.9%) worth $688.03 million (up 13.2%), Turkmenistan with 1.31 million tons (down 6.45%) worth $487.62 million (up 32.34%) and Kazakhstan with 750,955 tons (up 3.05%) worth $320.14 million (up 20.79%).
Iran’s exports exceeded 3.93 million tons worth $2.05 billion during the year, registering a 2.43% and a 23.21% rise in terms of weight and value year-on-year, respectively.
Russia was Iran’s biggest export destination with 1.41 million tons (up 24.52%) worth $743.88 million (up 28.58%), followed by Azerbaijan with 765,416 tons (down 7.66%) worth $654.05 million (up 15.72%), Turkmenistan with 1.27 million tons (down 6.34%) worth $459.51 million (up 37.11%) and Kazakhstan with 475,615 tons (down 7.05%) worth $195.34 million (up 4.36%).
Imports from the four countries under review hit 2.95 million tons worth $1.76 billion during the 11 months to register a 27.19% and 3.02% fall in weight and value, respectively.
Russia was the top exporter to Iran with 2.62 million tons (down 30.55%) worth $1.57 billion (down 5.29%). It was followed by Kazakhstan with 275,340 tons (up 26.89%) worth $124.8 million (up 60.28%), Azerbaijan with 18,964 tons (down 16.81%) worth $33.98 million (down 20.18%) and Turkmenistan with 39,544 tons (down 10.11%) worth $28.11 million (down 15.6%).
Iran’s trade with Caspian states hit 7.91 million tons worth $3.48 billion in the fiscal 2021-22, up from 6.24 million tons worth $2 billion year-on-year.
Russia, Iran Plan to Launch Trade via Caspian Sea
In a move that reflects both the increasing ties between Moscow and Tehran, and the difficulties faced by both countries in shipping via the Caucasus land bridge, given its instability and political changes, the two governments have announced plans to launch trade via the Caspian Sea between Astrakhan in Russia and Bandar Anzali in Iran, wrote Paul Goble, an author for the Eurasia Daily Monitor of the Jamestown Foundation, in a post published by Eurasia Review.
The two sides have further agreed that Russia will be allowed to transfer from ships to Iranian railroads 12 million tons of cargo a year, approximating 3,000 trainloads. In this way, the Caspian Sea will become a trade window to the world for Moscow.
Earlier this year, Russia and Iran had agreed to conduct trade via Kazakhstan and Turkmenistan, but the sea route is preferable because fewer political and security issues are involved and because Iran is now a member of the Shanghai Cooperation Council and tied more closely to Russia.
Russian analysts say this new Caspian route gives Russia an alternative to complete dependence on China and sends a message to Central Asian and South Caucasus countries that the North-South trade route Russia has long wanted can be more important for them too and that they should cooperate with it instead of seeking east-west ones.
And what is especially important, these analysts say, is that this new Caspian Sea route is “a natural counterweight” to Turkey’s presence and ambitions in the region, as it challenges the networks Ankara and the West have set up to undermine or exclude Russian influence there.
INSTC to Boost Share of Caspian Ports Shipping
The combined capacity of Iran’s five Caspian ports, namely Anzali, Noshahr, Fereydounkenar, Astara and Amirabad, has reached 35 million tons, accounting for only about 13% of the total capacity of Iranian ports, according to Jalil Eslami, the deputy head of Ports and Maritime Organization of Iran.
“Poor export infrastructures and lack of adequate equipment are to blame for the low shipping traffic of northern Iranian ports and freight forwarding companies, as well as traders’ reluctance to use their services,” Ali Chagharvand, director of Plan Management, Planning and Monitoring Department of Iran Chamber of Commerce, Industries, Mines and Agriculture, wrote for Tasnim News Agency.
"Traders and transportation companies do not avail themselves of the numerous advantages of Iran’s northern ports that are in recession. Economic players believe that they are uneconomical. This is while by removing obstacles, freight transportation and trade through northern ports can become a viable alternative to other transit routes and even southern ports,” he added.
According to the official, a meager 5-6 tons of the overall capacity of northern ports were used in the fiscal 2020-21, as demand for their services has declined in recent years.
"Noshahr Port has considerable advantages, including its proximity to the capital city and major commercial and industrial centers, easy access to the consumer markets of Central Asia and Eastern Europe, access to airport, availability of facilities for storage and movement of commercial goods, petroleum products and solid bulk cargo, having specialized warehouses and facilities for export and transit, as well as direct connection through pipelines to Chalous oil reservoirs. However, due to several reasons, the port’s shipping traffic is even lower than that of Amirabad Port,” he said.
The operationalization of the International North-South Transportation Corridor could give impetus to northern ports.
Iran’s state-owned Islamic Republic of Iran Shipping Lines has moved to expand its network by facilitating the transport of Russian goods to India via INSTC, a land-sea corridor passing through a dozen countries to bypass Western sanctions against Russia, Splash247.com reported.
The corridor has entered the operational phase after completing a trial phase in June when containers of wood laminate sheets departed from St. Petersburg toward Nhava Sheva Port in India.
