Russia looks to expands its trade corridors with Asia to sidestep sanctions

Russia is doubling down on two new logistics corridors linking it with markets in Asia, in a bid to sidestep sanctions and skirt disruptions affecting Middle East trade lanes, Bloomberg reported last week. Climate change has made the Northern Sea Route (NSR), an Arctic shipping lane connecting Russia with China, more feasible, the outlet said. Despite sanctions stonewalling the route’s development, Dubai-based operator DP World inked an agreement with Russia to develop container shipping via the route. Russia has also loaned Iran some USD 1.3 bn to develop railway infrastructure necessary for the International North South Transport Corridor (INTSC), a massive multimodal trade lane linking Russia to India. The INTSC is “sanctions proof,” Bloomberg cited a Russian official as saying. Both lanes offer significant time savings when compared to the traditional Suez Canal route, and are projected to see a surge in volumes, the outlet also said.

ICYMI: UAE port operator DP World entered into a USD 10.3 mn joint venture with Russian nuclear agency Rosatom to develop container shipping through the Arctic last October.