This is a game changer. It’s called the “International North-South Transport Corridor” with key partners India, Iran and Russia. It bypasses the Suez Canel route and is 40% cheaper, and 5 times faster in transporting goods.
The route starts in India, goes via Iran, the Caspian Sea to St Petersburg and beyond, bringing in partner countries Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Turkey, Tajikistan, Belarus, Ukraine, Oman, Syria and Bulgaria (observer country).
It’s an Indian-Iranian-Russian led initiative that facilitates multipolarity in the Eura-Asian region. Note that the system brings rivals Russia and Ukraine into a common economic connectivity.
The US is deeply concerned by this development which threatens their hegemony and geopolitical interests. The US has made several attempts to force India to abandon the initiative, but they have refused.
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‘The US is deeply concerned by this development which threatens their hegemony and geopolitical interests. The US has made several attempts to force India to abandon the initiative, but they have refused.’ ????
The INSTC in the regions mentioned counter China’s ‘belt and road’ initiative. Indian trade and diplomatic maneuvers are more likely to succeed in blunting China’s ambitions than any US led action.
The INSTC is an Indian initiative.
Actually, this is false. China also benefits from the INSTC. China can access this trade route too. In fact the trade route boosts the strategic position of both China and India.
The BRI is not in competition with the INSTC. This is totally false. What is common to both initiatives is that – contrary to the Rules Based Order – and in the spirit of BRICS, they are both systems promoting multipolarity and economic connectivity, and rather than being competitive, they are complimentary in a new international multipolar system which both India and China are shaping. In a multipolar system, rivals can participate through economic connectivity which is how economics should work.
The US opposes the multipolarity created by both initiatives as it undermines US hegemony. It is the US that seeks to divide countries, in order to assert their hegemony, and that is exactly where your comment resides.
If you had been following the news, you would have seen reports of the US applying significant pressure on India to withdraw from this project, including the deal struck with Iran for India to manage a port. China did not do that. China welcomes this initiative.
The US responded to this initiative by regarding India’s deal with Iran as a huge threat to the US, because it undermines their efforts to weaken Iran. So the idea that the US welcomes this initiative is absurd.
The US wanted a trade route to go through Israel, not through the Caspian Sea. The US does not derive any economic benefits from this trade route. That is another reason why they oppose it.
This initiative involves three main partners – Russia, Iran and India. It is an agreement between the three. The idea that India could initiate this project without Russia and Iran is false.
You’rephenomenal
More routes there are to Europe, there will be more opportunities for Sri Lanka and other South Asian & African countries that depend on the Suez Canal Route (SCR) to export their products and import their necessities.
For the uninitiated, the International North–South Transport Corridor (INSTC), as currently conceived is a 7,200-km (4500 mile) long route of ship, rail, and road route for moving freight between India, Iran, Azerbaijan, Russia, Central Asia and Europe. The route primarily involves moving freight from India, Iran, Azerbaijan and the Russian Federation via ship, rail and road. Sri Lanka, of course, can also benefit from this INSTC, as some of its trading partners like India, Iran, Russia are directly on the INSTC route. The existing Hambantota Port will also be a beneficiary of this increased traffic.
The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, etc. Although lots of new construction is envisaged and are underway, the route “As Is” makes use of existing roads, ports and railways to open up new areas in Eastern Europe to countries in Asia, currently served by the Suez Canal.
Studies made in 2015 show that transport via INSTC reduces costs by “$2,500 per 15 tons of cargo” than the existing Suez Route. As was expected the Western powers have opposed the INSTC from its very start, as it will reduce the influence of US, UK and Israel and other pro western countries in the Middle East & Europe.