We discuss the potential for enhancing collaboration between Russia and India on the Northern Sea Route and the North-South International Transport Corridor with Marat Zembatov, the Director of the Center for Interdisciplinary Studies at the Higher School of Economics, a member of the Russian-Omani Business Council, and a BRICS transport expert:
“The older generation recalls the phrase 'Hindi-Rusi – Bhai-Bhai,' which marked the beginning of a fraternal bond between our two nations at the start of India’s independence.
In light of increasing global geopolitical instability, the commitment of both nations to envision a shared future in the same direction is incredibly important, particularly regarding joint transport and logistics development. Events on August 20 and 21, 2025, highlighted the strategic direction for Russian-Indian cooperation in the transport domain.”
On August 20, Denis Manturov, the First Deputy Prime Minister of the Russian Government, addressed the 26th session of the Russian-Indian Intergovernmental Commission and announced joint plans for the development of two crucial transport corridors of the 21st century—the Northern Sea Route and the North-South International Transport Corridor. He emphasized that enhancing trade relations cannot be achieved without 'dependable logistics routes and innovative container services”.
These statements directly align with the earlier initiatives from the Russian Government regarding the preparation of an agreement for a free trade zone between the Eurasian Economic Union (EAEU) and India, aimed at lowering barriers for the flow of goods and speeding up their circulation. On the political front, this initiative is bolstered by diplomatic efforts. Today, August 21, Russia's Foreign Minister Sergei Lavrov voiced confidence in the potential organization of a visit by the Russian President to India before the end of this year.
Therefore, we see a three-dimensional strategy emerge: political endorsement from leaders, institutional agreements (EAEU – India), and concrete projects — the Northern Sea Route and the North-South Transport Corridor.
North-South Transport Corridor Space: from the 2000 Agreement to “Make in India”!
It is important to note that the agreement for the North-South Transport Corridor was signed on September 12, 2000, by Russia, Iran, and India. Ratification occurred in Russia in March 2022. At present, 12 countries are involved in the project, which comprises three main routes: the western route (through Azerbaijan), the eastern route (through Kazakhstan and Turkmenistan), and the Trans-Caspian route (featuring multimodal transshipment across the Caspian Sea).
The North-South ITC reflects the journey of the 16th-century Tver merchant Afanasy Nikitin, whose travels are chronicled in "Journey Beyond Three Seas," and serves as a logistical meridian linking northern Europe to the Indian Ocean through Russian territory. The clear advantage of this corridor over traditional routes (such as the Suez Canal) is a reduction in delivery times by 30-40%.
The primary task for effectively realizing the North-South Transport Corridor project today is to secure a stable cargo base and develop resilient, customer-friendly container services for freight owners. To accomplish this, it is vital to establish a predictable movement schedule, ensure transparent tariff and pricing policies, and integrate with national railway and port systems, all while considering current digitalization trends (the National Digital Transport and Logistics Platform, known as "GosLog").
In his remarks, First Deputy Prime Minister Denis Manturov of Russia emphasized the prospects of collaborating on high-speed electric train production as part of India's 'Make in India!' national program. This initiative aligns with the goal of achieving technological sovereignty, which has been prioritized by Narendra Modi's administration as part of the 'Atmanirbhar Bharat Abhiyan' or 'Campaign for a Self-Reliant India.' India is currently an evolving economy that has successfully advanced beyond regional development agendas and is championing economic and industrial partnerships with allied nations on a global scale. According to S. Jaishankar, India's Minister of External Affairs, from 2015 to 2024, over 220 industrial and transport projects have been implemented in Africa, with plans for an additional 100 projects in the near future. Thus, the alignment of our strategic development trajectories concerning import substitution and technological sovereignty with India's 'Campaign for a Self-Reliant India' is symbolically significant: industrial cooperation in rolling stock directly supports the infrastructure development of transport corridors and fosters new opportunities for joint growth.
Seamless connection between the Northern Sea Route and the North-South ITC
Russia is currently encouraging India to regard the Northern Sea Route and the North-South Transport Corridor not as rivals but as routes that complement each other. In light of the unpredictable geopolitical shifts impacting transit areas around the world, this diversification in delivery routes for vital raw materials, food items, and industrial goods between our countries — primarily leveraging a longitudinal transport path across Russian territory and the Arctic — creates additional assurances for the safety of goods and makes a significant contribution to food and energy security within the Global South and East.
While the North-South Transport Corridor primarily serves as a promising route for container shipping within multimodal logistics of 'land-sea,' the Northern Sea Route (and more broadly, the Trans-Arctic Transport Corridor) functions mainly as a resource route that facilitates faster and more cost-effective delivery of hydrocarbons and other raw materials toward Asia. For India, which is assessing the economic viability of utilizing the Northern Sea Route, partnering with Russia offers not only access to new energy route options but also a strategically important opportunity to diversify competitive maritime shipping lanes.
Challenges on the Way to a Successful Logistics Future
The challenges involved in implementing the project for a seamless integration of transport corridors to form the transport and logistics backbone of Eurasia highlight the need for a multidisciplinary approach. The first challenge arises from the varied national interests of the 12 countries partaking in the North-South ITC agreement (with reference to the Ashgabat Agreements of 2010). These countries do not only differ in the depth of transportation reforms and levels of national technological sovereignty; they also show low levels of procedural integration. Concerns such as border and customs control processes, a lack of alignment in transportation digitalization, low national expertise, and other significant discrepancies affecting compatibility among their transport systems across various parameters render the project complex and multi-dimensional. The second challenge is related to infrastructural constraints. We confront an urgent requirement to fundamentally modernize the ports of the Caspian region, enhance railway hubs and container terminals, establish new railway ferry connections, and, importantly, construct modern multimodal transport and logistics hubs along the connecting corridors. The third challenge pertains to the development of financial mechanisms necessary to bring in investments amid the sanctions pressure from unfriendly nations. This necessitates the establishment of flexible payment frameworks that incorporate both national currencies and alternative payment methods, tapping into the innovations of modern fintech.
It's essential to point out the inherent issues faced by the northern latitude route: the high expenses of icebreaker support, the necessity for developing logistical support points, the often unpredictable ice conditions in the eastern Arctic, and the degradation of permafrost soils, among others. However, Russia holds a strong competitive advantage here, thanks to its monopoly on the icebreaker fleet and the institutional leadership provided by its national transport and energy leader, 'Rosatom.
What does the future hold?
For Russia, India's involvement in both projects signifies the establishment of the 'North-South' corridor as a leading Eurasian transport initiative, acting as a hub for the national transport and logistics systems of the countries it crosses and enhancing Russia's influence in the Persian Gulf region. This collaboration will enable all parties involved to diversify their export-import flows, save time and logistics costs, and reduce dependency on increasingly unstable traditional European routes.
For India, executing these projects will mark a strategic enhancement of its status as a transport powerhouse, leveraging its position on diversified routes and gaining access to Russia's energy resources. The expected reduction in time and resource expenditures for trade with Europe and Eurasia—bypassing congested maritime routes—will positively impact the Indian economy within the first three years of the initiative. In the long run, India could emerge as a crucial strategic transport and logistics partner for two transcontinental routes simultaneously, solidifying its role as a 'global logistics player.'
The development of the North-South Transport Corridor is already extending beyond a simple logistical framework. With its practical integration with the Northern Sea Route, the mega-corridor’s function as a geo-economic platform for collaborative efforts among friendly nations is becoming clear, where transportation is both a tool and a factor in increasing competitiveness and synergy. Moreover, the link between the North-South ITC and the Northern Sea Route opens a unique range of opportunities for Russia and India, from diversifying energy flows to creating industrial value-added chains.
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