This study examines the International North-South Transport Corridor (INSTC) as a comprehensive instrument for transforming Russia-India trade relations under sanctions pressure. The research focuses on de-dollarization processes in bilateral settlements and the formation of alternative logistics routes connecting Russia and India through Iran and Caspian states. The study analyzes the infrastructure architecture of the corridor, ruble-rupee settlement mechanisms, institutional barriers to national currency trade, and cargo flow dynamics across different INSTC branches. Particular attention is paid to the corridor's competitive advantages over the traditional Suez Canal route, trade imbalance issues, and the role of Special Rupee Vostro Accounts in banking operations. The methodology employs comparative analysis of transport corridors, institutional analysis of payment mechanisms, and structural analysis of commodity flows. The research integrates tools from economic geography, international political economy, and international relations theory to examine the interconnection between infrastructure development and de-dollarization mechanisms. The study's key contribution lies in the integrated analysis of INSTC as a unified instrument combining logistics and financial components of international trade. The research reveals the interconnection between corridor infrastructure development and Russia-India de-dollarization mechanisms. Major findings include: the ruble share in Russian exports increased from 12% to 41% during 2022-2024; INSTC cargo flows reached 26.9 million tons with 19% growth; the corridor reduces delivery time from 35-40 to 20-25 days and transportation costs by 20-30% compared to the Suez Canal route. Key obstacles identified include trade imbalance, excessive rupee accumulation, absence of direct ruble-rupee exchange rate, and sanctions pressure on correspondent banks. The completion of the Rasht-Astara railway section by 2027-2028 will create continuous rail connectivity with capacity up to 15 million tons annually.
Ivan Danilov (Thu,) studied this question.