MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘International North South Transportation Corridor’

India-Russia-Iran: Eurasia’s new transportation powerhouses

Posted by M. C. on July 22, 2022

These countries never attacked US but hate US due to an empire building foreign policy. Wouldn’t life be better for all if limited our battles to the free market?

No longer just an ‘alternative route’ on a drawing board, the International North South Transportation Corridor (INSTC) is paying dividends in a time of global crisis. And Moscow, Tehran and New Delhi are now leading players in the Eurasian competition for transportation routes.

By Matthew Ehret

https://thecradle.co/Article/Investigations/13240

Tectonic shifts continue to rage through the world system with nation-states quickly recognizing that the “great game” as it has been played since the establishment of the Bretton Woods monetary system in the wake of the second World War, is over.

But empires never disappear without a fight, and the Anglo-American one is no exception, overplaying its hand, threatening and bluffing its way, right to the end.

End of an order

It seems no matter how many sanctions the west imposes on Russia, the victims most affected are western civilians. Indeed, the severity of this political blunder is such that the nations of the trans-Atlantic are heading towards the greatest self-induced food and energy crisis in history.

While the representatives of the “liberal rules-based international order” continue on their trajectory to crush all nations that refuse to play by those rules, a much saner paradigm has come to light in recent months that promises to transform the global order entirely.

The multipolar solution

Here we see the alternative security-financial order which has arisen in the form of the Greater Eurasian Partnership. As recently as 30 June at the 10th St Petersburg International Legal Forum, Russian President Vladimir Putin described this emerging new multipolar order as:

“A multipolar system of international relations is now being formed. It is an irreversible process; it is happening before our eyes and is objective in nature. The position of Russia and many other countries is that this democratic, more just world order should be built on the basis of mutual respect and trust, and, of course, on the generally accepted principles of international law and the UN Charter.”

Since the inevitable cancellation of western trade with Russia after the Ukraine conflict erupted in February, Putin has increasingly made clear that the strategic re-orientation of Moscow’s economic ties from east to west had to make a dramatically new emphasis on north to south and north to east relations not only for Russia’s survival, but for the survival of all Eurasia.

Among the top strategic focuses of this re-orientation is the long overdue International North South Transportation Corridor (INSTC).

On this game-changing mega-project, Putin said last month during the plenary session of the 25th St Petersburg International Economic Forum:

“To help companies from other countries develop logistical and cooperation ties, we are working to improve transport corridors, increase the capacity of railways, trans-shipment capacity at ports in the Arctic, and in the eastern, southern and other parts of the country, including in the Azov-Black Sea and Caspian basins – they will become the most important section of the North-South Corridor, which will provide stable connectivity with the Middle East and Southern Asia. We expect freight traffic along this route to begin growing steadily in the near future.”

The INSTC’s Phoenix Moment

Until recently, the primary trade route for goods passing from India to Europe has been the maritime shipping corridor passing through the Bab El-Mandeb Strait linking the Gulf of Aden to the Red Sea, via the highly bottlenecked Suez Canal, through the Mediterranean and onward to Europe via ports and rail/road corridors.

Following this western-dominated route, average transit times take about 40 days to reach ports of Northern Europe or Russia. Geopolitical realities of the western technocratic obsession with global governance have made this NATO-controlled route more than a little unreliable.

The International North South Transport Corridor (INSTC)

Despite being far from complete, goods moving across the INSTC from India to Russia have already finished their journey 14 days sooner than their Suez-bound counterparts while also seeing a whopping 30 percent reduction in total shipping costs.

These figures are expected to fall further as the project progresses. Most importantly, the INSTC would also provide a new basis for international win-win cooperation much more in harmony with the spirit of geo-economics unveiled by China’s Belt and Road Initiative (BRI) in 2013.

Cooperation not competition

Originally agreed upon by Russia, Iran and India in September 2000, the INSTC only began moving in earnest in 2002 – albeit much more slowly than its architects had hoped.

This 7,200 km multimodal megaproject involves integrating several Eurasian nations directly or indirectly with rail, roads and shipping corridors into a united and tight-knit web of interdependency. Along each artery, opportunities to build energy projects, mining, and high tech special economic zones (SEZs) will abound giving each participating nation the economic power to lift their people out of poverty, increase their stability and their national power to chart their own destinies.

Beyond the founding three nations, the other 10 states who have signed onto this project over the years include Armenia, Georgia, Turkey, Azerbaijan, Kazakhstan, Belarus, Tajikistan, Kyrgyzstan, Oman, Syria and even Ukraine (although this last member may not remain on board for long). In recent months, India has officially invited Afghanistan and Uzbekistan to join too.

While western think tanks and geopolitical analysts attempt to frame the INSTC as an opponent to China’s BRI, the reality is that both systems are extremely synergistic on multiple levels.

China’s Belt and Road Initiative (BRI)

Unlike the west’s speculation-driven bubble economy, both the BRI and INSTC define economic value and self-interest around improving the productivity and living standards of the real economy. While short term thinking predominates in the myopic London-Wall Street paradigm, the BRI and INSTC investment strategies are driven by long-term thinking and mutual self-interest.

It is no small irony that such policies once animated the best traditions of the west before the rot of unipolar thinking took over and the west lost its moral compass.

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In Eurasia, the War of Economic Corridors Is in Full Swing

Posted by M. C. on July 18, 2022

Mega Eurasian organizations and their respective projects are now converging at record speed, with one global pole way ahead of the other.

This also explains why Russia has been busy building a vast array of state-of-the-art icebreakers.

By Pepe Escobar
The Cradle

The War of Economic Corridors is now proceeding full speed ahead, with the game-changing first cargo flow of goods from Russia to India via the International North South Transportation Corridor (INSTC) already in effect.

Very few, both in the east and west, are aware of how this actually has long been in the making: the Russia-Iran-India agreement for implementing a shorter and cheaper Eurasian trade route via the Caspian Sea (compared to the Suez Canal), was first signed in 2000, in the pre-9/11 era.

The INSTC in full operational mode signals a powerful hallmark of Eurasian integration – alongside the Belt and Road Initiative (BRI), the Shanghai Cooperation Organization (SCO), the Eurasian Economic Union (EAEU), and last but not least, what I described as “Pipelineistan” two decades ago.

Caspian is key

Let’s have a first look on how these vectors are interacting.

The genesis of the current acceleration lies in Russian President Vladimir Putin’s recent visit to Ashgabat, Turkmenistan’s capital, for the 6th Caspian Summit. This event not only brought the evolving Russia-Iran strategic partnership to a deeper level, but crucially, all five Caspian Sea littoral states agreed that no NATO warships or bases will be allowed on site.

That essentially configures the Caspian as a virtual Russian lake, and in a minor sense, Iranian – without compromising the interests of the three “stans,” Azerbaijan, Kazakhstan and Turkmenistan. For all practical purposes, Moscow has tightened its grip on Central Asia a notch.

As the Caspian Sea is connected to the Black Sea by canals off the Volga built by the former USSR, Moscow can always count on a reserve navy of small vessels – invariably equipped with powerful missiles – that may be transferred to the Black Sea in no time if necessary.

Stronger trade and financial links with Iran now proceed in tandem with binding the three “stans” to the Russian matrix. Gas-rich republic Turkmenistan for its part has been historically idiosyncratic – apart from committing most of its exports to China.

Under an arguably more pragmatic young new leader, President Serdar Berdimuhamedow, Ashgabat may eventually opt to become a member of the SCO and/or the EAEU.

Caspian littoral state Azerbaijan on the other hand presents a complex case: an oil and gas producer eyed by the European Union (EU) to become an alternative energy supplier to Russia – although this is not happening anytime soon.

The West Asia connection

Iran’s foreign policy under President Ebrahim Raisi is clearly on a Eurasian and Global South trajectory. Tehran will be formally incorporated into the SCO as a full member in the upcoming summit in Samarkand in September, while its formal application to join the BRICS has been filed.

Purnima Anand, head of the BRICS International Forum, has stated that Turkey, Saudi Arabia and Egypt are also very much keen on joining BRICS. Should that happen, by 2024 we could be on our way to a powerful West Asia, North Africa hub firmly installed inside one of the key institutions of the multipolar world.

As Putin heads to Tehran next week for trilateral Russia, Iran, Turkey talks, ostensibly about Syria, Turkish President Recep Tayyip Erdogan is bound to bring up the subject of BRICS.

Tehran is operating on two parallel vectors. In the event the Joint Comprehensive Plan of Action (JCPOA) is revived – a quite dim possibility as it stands, considering the latest shenanigans in Vienna and Doha – that would represent a tactical victory. Yet moving towards Eurasia is on a whole new strategic level.

In the INSTC framework, Iran will make maximum good use of the geostrategically crucial port of Bandar Abbas – straddling the Persian Gulf and the Gulf of Oman, at the crossroads of Asia, Africa and the Indian subcontinent.

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