Source: Reuters (UK)
Russia Iran grain trade route via the Caspian Sea has reopened as Russian companies resume grain exports to Iran. Moreover, Reuters reports, citing sources, that this route is becoming one of the safest for trade with Iran following the closure of the Strait of Hormuz.
Russia Iran Grain Trade Route: Recent Suspensions and Current Status
Last week, Russian grain shipments to Iran from ports on both the Black and Caspian Seas were suspended. Furthermore, the pause in shipments via the Caspian Sea lasted about two days. Meanwhile, shipments from Black Sea terminals to the Persian Gulf remain suspended.
The publication reports that LSEG data indicates that five ships carrying approximately 22,600 tons of grain are currently loading at the port of Astrakhan. Additionally, nine ships carrying 28,000 tons of grain are awaiting unloading off the coast of Iran. Between July and February, Iran imported approximately 6 million tons of grain from Russia. Consequently, this is roughly double the amount for the same period last year.
Port Infrastructure and Logistics
Russia currently has three grain ports on the Caspian Sea—two in Astrakhan and one in Makhachkala. Furthermore, these have a combined capacity of at least 3 million tons. A new terminal in Makhachkala with a capacity of 1.5 million tons is scheduled to open in 2028.
Kazakhstan is another grain exporter with access to the Caspian Sea. However, last week, the country suspended barley shipments to Iran.
Alexander Sharov, a representative of the consulting company RusIranExpo, noted that Russian wheat grown in the Volga region is logistically most convenient for export to Iran. According to him, wheat shipments to Iran could be redirected from the Black Sea port of Novorossiysk to the Caspian Sea. Specifically, since the grain is grown in the Volga region, logistically the most efficient route is via the Volga and then across the Caspian Sea.
At the same time, some analysts note that there are limitations. Specifically, there are no large-capacity bulk carriers in the Caspian Sea—only river-sea vessels with a deadweight of 3,000-6,000 tons.
Future Corridor Development
Earlier, Energy Minister Sergei Tsivilev reported that Russia was negotiating the supply of large volumes of wheat to Iran. Furthermore, the shipments are planned to be carried out via the International North-South Transport Corridor. Consequently, the EAEU and Iran are scheduled to complete this corridor by 2030.