On 17th May 2023, the governments of Iran and Russia signed an agreement worth €1.45 billion (US$1.6 billion) to build a railway line between Rasht in Iran and Astara on the border with Azerbaijan. The project in northern Iran is expected to be crucial for rail freight transport through the International North-South Transport Corridor (INSTC) via Azerbaijan. Under the agreement, both sides will jointly finance the design, construction and delivery of goods and services. Once completed, the 162 km line will enable rail freight transport from the Gulf via St Petersburg in Russia to Helsinki in Finland.
