Russia seeks 'sanctions-proof' trade and payment routes as Western pressure mounts

Russia is attempting to bolster its economic sovereignty in the face of Western sanctions by developing alternative financial and trade pathways, including the International North-South Transport Corridor (INSTC) and the BRICS Bridge payment system.

An alternative to the Suez

At the heart of this strategy lies the INSTC, a 7,200-kilometer network combining sea, rail, and road transport to connect Russia with India via Iran, according to an analysis by Anadolu. The route is being promoted as an alternative to the Suez Canal, reducing transport distances by approximately 40% and cutting shipping times from 45 days to fewer than 25.

Iran, with Russian financing, is working to complete missing rail links and modernize ports on the Caspian Sea, a development estimated to reduce container transport costs by up to 30%. In 2025, approximately 30 million tons of cargo moved through the corridor, with an official capacity target of 45 million tons annually by 2030. However, challenges remain: construction delays on the Rasht–Astara railway line in Iran, geopolitical risks, and the need for transshipment at certain points. Russian Energy Minister Sergey Tsivilev stated that the agreement to launch the railway project will be signed on April 1.

BRICS Bridge versus SWIFT

Simultaneously, Russia is developing alternative digital financial infrastructure to reduce its dependence on the SWIFT system. The BRICS Bridge is a blockchain-based platform connecting the central bank digital currencies (CBDCs) of BRICS nations—Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa, and the United Arab Emirates.

The platform is in an advanced pilot stage, featuring controlled transactions between Russia, China, the United Arab Emirates, and Iran. The system allows for direct transfers between central bank digital wallets, bypassing correspondent banks and reducing transaction costs by up to 40%.

The obstacles

Despite these ambitious initiatives, the Russian strategy faces significant geopolitical and technical hurdles. Some member countries appear hesitant due to the fear of secondary sanctions from the United States. Additionally, trading in national currencies has created liquidity imbalances.

Russia, for example, has accumulated vast amounts of Indian rupees from oil sales without corresponding imports to utilize them. Analysts emphasize that for the system to become fully operational, rapid digitization and modernization of customs mechanisms across all transit countries are required. Moscow is thus attempting to build an "economic fortress" against the West—yet its ultimate effectiveness remains to be seen in practice.

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