TEHRAN – Iran and Russia’s Astrakhan region are strengthening cooperation in trade, industry, energy and logistics as part of efforts to enhance connectivity along the International North–South Transit Corridor (INSTC), Iran’s Consul General in Astrakhan said.

During a meeting with the region’s deputy governor and minister of industry, Ahmad Heidarian, Iran’s consul general in Astrakhan, emphasized the strategic importance of deepening economic and industrial ties and reinforcing maritime transport routes between the two sides.

The Russian officials described trade growth with Iran as “remarkable and upward” and announced Astrakhan’s readiness to allocate land in its special economic zones for Iranian companies to establish economic bases.

They also voiced support for projects led by Iran’s Mostazafan Foundation and welcomed the creation of an Iranian export terminal in the port of Olya.

The talks also addressed cooperation in shipbuilding, offshore farming, and joint investments, with both sides stressing support for investors and continued engagement to streamline procedures.

Heidarian underlined Astrakhan’s strategic role as “Iran’s gateway to Russia” and called for easing navigation restrictions along the Volga River, accelerating industrial and energy cooperation, and helping establish a direct Rasht–Astrakhan flight to facilitate business and people-to-people exchanges. The two sides agreed to pursue follow-up actions in logistics, agriculture, oil and gas, and marine industries.

Iran’s participation in Caspian energy forum

Heidarian also attended the 3rd International Youth Oil and Gas Forum, titled “Caspian Sea – the Sea of Success,” held at Astrakhan State Technical University.

The event attracted regional officials, academics and energy professionals.

In meetings with executives from Lukoil, scholars and energy experts, Heidarian highlighted the Caspian Sea’s critical role in global and regional energy security and called for expanded Iran–Russia cooperation in research, new technologies and oil and gas industrial projects.

He said such collaborations could serve as a foundation for broader partnerships in scientific, industrial and economic fields. Following the event, Heidarian joined Astrakhan’s deputy governor, Kazakhstan’s consul general and other foreign guests in visiting an exhibition showcasing Russia’s latest oil and gas technologies and university research achievements.

Heidarian also met the governor of Astrakhan in early September, to discuss trade, transport, and cultural cooperation.

The governor welcomed the new Iranian envoy, calling Iran a “reliable and strategic partner.”  He said more than 70 Iran-backed companies are active in Astrakhan, including a branch of Mir Business Bank. Trade between Iran and Astrakhan has been growing, with cooperation expanding under the International North–South Transport Corridor (INSTC).

He noted that cargo traffic through Astrakhan’s ports rose 37 percent to 6.0 million tons last year, with a significant share linked to Iran. The province’s ports have a total capacity of 16 million tons, including Salianika Port, in which Iran holds a major stake. He also highlighted the activities of Iran’s Roza company in the Lotus special economic zone, and called for greater Iranian participation in developing container and cold-storage terminals. Cooperation with Iran’s Mostazafan Foundation was described as positive, with the governor urging further engagement.

The governor underlined Astrakhan’s ties with Iran’s Gilan and Mazandaran provinces, as well as with Rasht municipality. He added that Iranian universities are members of the Caspian Universities Association, and Persian is taught at Astrakhan State University and its School of Linguistics.

Astrakhan is a historic city in Southern Russia and the administrative center of Astrakhan Oblast. It is strategically situated on the Volga River, close to where it empties into the Caspian Sea. This unique location has earned it the nickname "The Caspian Capital" and has defined its role as a crucial gateway between Europe and Asia for centuries.

The economy of Astrakhan is heavily influenced by its geographic position, its natural resources, and its transport infrastructure.

Transportation and Logistics: It is the cornerstone of Astrakhan's economy.

The Port of Astrakhan: A major Russian seaport on the Caspian Sea, it is a critical node for the North-South International Transport Corridor (INSTC). This trade route is designed to move cargo from India, Iran, and the Persian Gulf through the Caspian Sea to Russia and further into Europe. This positions Astrakhan as a vital logistical hub, competing with traditional routes via the Suez Canal.

River Port: As a key port on the Volga River, it is integrated into Russia's extensive system of inland waterways, connecting it to other major Russian cities.

Oil and Natural Gas: Astrakhan is home to a major natural gas condensate field, one of the largest in Europe. The Astrakhan Gas Processing Plant is a significant industrial enterprise, specializing in the extraction and processing of sulfur-rich gas. This sector is a major employer and a primary source of industrial output and exports for the region.

Shipbuilding and Repair: Given its river and sea port status, Astrakhan has a long-standing and developed shipbuilding industry, constructing and servicing both cargo and naval vessels.

Fishing: The Volga River delta and the Caspian Sea are renowned for their fishing grounds. Astrakhan is famously known as the "Caviar Capital of Russia," producing the majority of the country's black caviar from sturgeon. Commercial fishing for other species is also a major industry.

Agriculture: The fertile delta land supports the cultivation of vegetables, melons, rice, and tomatoes.

Food Processing: Leveraging its agricultural and fishing output, the region has a strong food-processing sector, including fish canning, vegetable processing, and salt production.

Main Exports:

Energy Products: Processed natural gas, condensate, and related petrochemicals.

Food Products: Fish and caviar are the most famous exports.

Agricultural Products: Rice, vegetables, and melons are supplied to other Russian regions.

Machinery: Ships and related equipment.

Main Imports: As a logistical hub, a wide variety of goods transit through Astrakhan. Key imports include: Consumer goods, Machinery and equipment, Food products not produced locally, Construction materials.

Trading Partners: Due to the INSTC, Astrakhan's trade is heavily oriented towards Caspian Sea littoral states: Kazakhstan, Azerbaijan, Turkmenistan, Iran, India (as a key destination/origin for the corridor)

Growth of the INSTC: Sanctions on Russia have increased the strategic importance of the North-South Corridor, leading to renewed investment and attention on Astrakhan's port facilities.

Astrakhan's economy is a unique blend of traditional sectors (fishing, agriculture) and strategic industries (logistics, energy). Its greatest asset is its geographic location, making it a pivotal transport and trade bridge between Russia and the Caspian region. While it remains a key energy and food producer, its future economic growth is increasingly tied to its role in international trade corridors like the INSTC.

EF/MA