Informist, Wednesday, Mar 20, 2024
--Govt source: Expediting plan for alternate trade route to Russia
--Govt source: Expediting plan for trade route to Russia via Iran
--Govt source: Expediting new trade route to Russia to avoid Red Sea
--Govt source: Russia may send test shipment via Chabahar Port soon
By Krity Ambey
NEW DELHI – With shipping route through the Red Sea under attack from Houthi rebels, India and Russia are expediting a plan to use Iran as an alternate trade route, a government official said. The two sides hope to enable movement of Russian shipments to India using the International North–South Transport Corridor, which runs through Iran's Chabahar Port and Bandar Abbas Port, the official said.
Russia may send a test shipment to India through the Chabahar Port in the coming months, the official told Informist. India had received the first shipment from Russia through the International North–South Transport Corridor, routed through the Bandar Abbas Port, way back in 2022.
The International North–South Transport Corridor, initiated by India, Russia, and Iran, in 2000, is a multi-modal network of ship, road, and rail that connects St Petersburg to Mumbai via the Chabahar Port and the Bandar Abbas Port through the Caspian Sea. The plan to operationalise the route has become a priority after Houthi rebels started targeting shipping vessels in the Red Sea in November.
The government held a meeting with exporters last week and discussed the proposal, Federation of Indian Export Organisations Director General and Chief Executive Officer Ajay Sahai said.
Russia's VTB Bank is currently carrying out a feasibility study of the trade route, Sahai said. The Russian government is also coordinating with Iran to construct a 900-mile-long railway track from Caspian Sea coast to the Chabahar Port and the Bandar Abbas Port of Iran, Sahai said.
Currently, the Russia-India trade route is entirely a seaway. The shipments leave from St Petersburg through the Baltic Sea passing through the North Sea, the Celtic Sea, the Mediterranean Sea, the Suez Canal, the Red Sea, and the Arabian Sea, to reach Mumbai.
Russia wants to avoid the Red Sea route due to the ongoing violence there. The Houthi militants attacked a Russian oil vessel in January, as per maritime security agency Ambrey. The attack resulted in a decline in imports from Russia in February to $4.77 bln from $5.72 bln in January, Director General of Foreign Trade Santosh Sarangi said.
The imports from Russia were down 4.8% on year in February, as per the data sourced from the commerce ministry. This was the first time in 30 months when imports from Russia fell on year.
Fears of disruption in global supply chain have emerged in the past few months in the aftermath of attacks on container ships passing through the Red Sea by Iran-backed Houthi rebels as a show of support to Hamas. To add to the misery, even pirates, exploiting the crisis, have made a comeback in the Gulf of Aden.
Although Houthi's major targets include merchant vessels owned by Israeli, American, and British companies, vessels carrying other flags also have come under attack. The Russian tanker that was attacked in January had British affiliation in the past which led to its attack, Ambrey had said. End
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Informist, Wednesday, Mar 20, 2024
--Govt source: Expediting plan for alternate trade route to Russia
--Govt source: Expediting plan for trade route to Russia via Iran
--Govt source: Expediting new trade route to Russia to avoid Red Sea
--Govt source: Russia may send test shipment via Chabahar Port soon
By Krity Ambey
NEW DELHI – With shipping route through the Red Sea under attack from Houthi rebels, India and Russia are expediting a plan to use Iran as an alternate trade route, a government official said. The two sides hope to enable movement of Russian shipments to India using the International North–South Transport Corridor, which runs through Iran's Chabahar Port and Bandar Abbas Port, the official said.
Russia may send a test shipment to India through the Chabahar Port in the coming months, the official told Informist. India had received the first shipment from Russia through the International North–South Transport Corridor, routed through the Bandar Abbas Port, way back in 2022.
The International North–South Transport Corridor, initiated by India, Russia, and Iran, in 2000, is a multi-modal network of ship, road, and rail that connects St Petersburg to Mumbai via the Chabahar Port and the Bandar Abbas Port through the Caspian Sea. The plan to operationalise the route has become a priority after Houthi rebels started targeting shipping vessels in the Red Sea in November.
The government held a meeting with exporters last week and discussed the proposal, Federation of Indian Export Organisations Director General and Chief Executive Officer Ajay Sahai said.
Russia's VTB Bank is currently carrying out a feasibility study of the trade route, Sahai said. The Russian government is also coordinating with Iran to construct a 900-mile-long railway track from Caspian Sea coast to the Chabahar Port and the Bandar Abbas Port of Iran, Sahai said.
Currently, the Russia-India trade route is entirely a seaway. The shipments leave from St Petersburg through the Baltic Sea passing through the North Sea, the Celtic Sea, the Mediterranean Sea, the Suez Canal, the Red Sea, and the Arabian Sea, to reach Mumbai.
Russia wants to avoid the Red Sea route due to the ongoing violence there. The Houthi militants attacked a Russian oil vessel in January, as per maritime security agency Ambrey. The attack resulted in a decline in imports from Russia in February to $4.77 bln from $5.72 bln in January, Director General of Foreign Trade Santosh Sarangi said.
The imports from Russia were down 4.8% on year in February, as per the data sourced from the commerce ministry. This was the first time in 30 months when imports from Russia fell on year.
Fears of disruption in global supply chain have emerged in the past few months in the aftermath of attacks on container ships passing through the Red Sea by Iran-backed Houthi rebels as a show of support to Hamas. To add to the misery, even pirates, exploiting the crisis, have made a comeback in the Gulf of Aden.
Although Houthi's major targets include merchant vessels owned by Israeli, American, and British companies, vessels carrying other flags also have come under attack. The Russian tanker that was attacked in January had British affiliation in the past which led to its attack, Ambrey had said. End
US$1 = 83.01 rupees
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.