Jens Asbjørn Bøgen
It’s estimated to cost $40 billion.
Global trade routes are shifting rapidly as Russia seeks new ways to move goods away from traditional Western channels.
Massive infrastructure projects are emerging across Asia, fueled by geopolitical pressure and the need for economic survival.
And a massive new highway venture could soon connect several major regional players – if China is willing to pay for part of the project
A massive new route
Russia is looking to China to help build a major mega-highway along the Caspian Sea. Kommersant reports that Chinese technology to build specific hubs, bridges and sections as well as cash is what Moscow seeks.
The ambitious project forms the eastern branch of a massive transport corridor. The Kremlin has backed this $40 billion plan for more than two decades.
Russian Deputy Prime Minister Marat Khusnullin shared the news at an economic forum in Kazan. He revealed that Russia is targeting Chinese state banks for the necessary capital.
Bypassing the West
The planned route starts with a 1,381-kilometer highway connecting Moscow to Astrakhan. From there, it will cut through Kazakhstan and Turkmenistan down to Iranian ports, eventually reaching Afghanistan and Pakistan.
Sanctions from the Ukraine conflict forced the Kremlin to overhaul its entire trade strategy. Before 2022, when Russia invaded Ukraine, about 40 percent of Russian exports went through nations that are now deemed unfriendly.
By 2024, that number plummeted. Meanwhile, shipments moving through Iran and Central Asia more than doubled. Now, regional officials want 80 percent of all cargo flows to pass entirely through friendly countries.
Pressing regional needs
This new Caspian highway is designed to speed things up. It should shave up to 20 percent off cargo delivery times between Moscow and Iran.
“The issue of creating an eastern highway corridor along the Caspian Sea, Russia, Kazakhstan, Turkmenistan, access to Iran, and further access to Afghanistan and Pakistan, is extremely pressing,” Khusnullin said, according to RIA Novosti.
The original pact for this corridor was signed back in 2000 by Russia, India, and Iran. Ironically, the original goal was to bring Asian freight up through Russian territory into Europe. Today, the trucks are turning the other way.
Sources: RIA Novosti, United24Media, The Moscow Times, Kommersant
