The Strategy of Russia in the Trans-Eurasian Connectivity

Abstract

It was observed in the recent period that strategic initiatives enhancing connectivity in the Eurasian continent. Since 2014, the Belt and Road Initiative (BRI) has been promoted by China, and some CIS countries, including Russia, established the Eurasian Economic Union (EAEU) in 2015. Several East–West routes exist, in contrast to which the INSTC is the only one meridional transcontinental corridor in the EAEU. The rapidly growing economy of India, on the other hand, for which the INSTC could be the land-based corridor of choice for efficient trade with Russia and Central Asia. Ongoing challenges, bureaucratic delays, and inter-regional disputes are the challenges likely to be faced by the project as competition for influence across Eurasia continues to heat up. INSTC may become a major game-changer in global trade as well as in the broader region provided it tackles all the obstacles in its way. The northwestern part of Europe and the Nordic countries, along with Central Asia and the Persian Gulf, are connected through this multimodal INSTC. Passing through the Suez Canal and Gibraltar, multimodal routes are to be facilitated for the shift of freight that flows from these sea routes. The INSTC has not gained as much traction as the existing Eurasian corridors and TRACECA, given sanctions imposed on Iran and bottlenecks in the transport infrastructure. The active interaction of the EAEU member states with India and Iran, over the last several years, as well as a better regulatory environment around the Caspian Sea, drove its development. To form the framework for a strong connectivity network from the Indian Ocean to the Baltic States and Scandinavia, for which the INSTC has much potential. Besides its significance economically and its capacity to improve the bilateral relations of member states, INSTC also has the potential to act as a major counterbalance to Chinese influence in the region of Central Asia where the interests of Russia, Iran, and India, the leading INSTC states, also align. Ongoing challenges, bureaucratic delays, and inter-regional disputes are the challenges likely to be faced by the project as competition for influence across Eurasia continues to heat up. INSTC may become a major game-changer in global trade as well as in the broader region provided it tackles all the obstacles in its way.