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Freight transit

First Russian Freight Train Reaches Iran via Kazakhstan and Turkmenistan

A Russian freight train has arrived at the Aprin dry port near Tehran after transiting through Kazakhstan and Turkmenistan, Iran’s ISNA news agency reported on November 8. The train carried 62 forty-foot containers loaded with paper, cellulose, and other paper products, according to Iranian officials. The cargo is destined for various regions in Iran and Iraq. The train crossed the Turkmenistan-Iran border at Incheh-Borun and reached Tehran in 12 days, marking a new phase in regional transit cooperation. Morteza Jafari, Deputy Director of Iranian Railways, said the arrival of the first Russian freight train is expected to enhance trade ties between Russia and Iran and lay the groundwork for regular rail services linking the two countries with Central Asia. He noted that Iran currently anticipates receiving one Russian container train every ten days, with plans to increase the frequency. Jafari emphasized Iran’s broader goal of becoming a regional hub for exports, imports, and transit by expanding coordination with neighboring and CIS countries. The new route underscores growing interest in enhancing rail connectivity across the Caspian region, where Iran is positioning itself as a key transit corridor. In August, Turkmenistan and Iran agreed to construct two additional railway lines at the Sarakhs border crossing to increase freight capacity. The decision followed discussions between Iranian Railways head Jabbar Ali Zakeri and Turkmenistan’s Minister of Railways Mammet Akmammedov during the UN Conference on Landlocked Developing Countries. Officials in both countries have stressed that expanded rail infrastructure will support faster, more reliable cargo movement across Central Asia and help integrate regional markets.

Hydropower

Iran to Retain Control of Sangtuda-2 Hydropower Plant in Tajikistan Until 2032

Tajikistan and Iran have agreed to extend the repayment period for Iran’s investment in the Sangtuda-2 hydroelectric power plant by six years and four months. The extension will allow the Iranian side to recover its investment, after which full ownership of the facility will transfer to the Tajik government. The amendments to the electricity purchase agreement between Tajikistan’s state-owned power utility Barki Tochik and Iran’s Sangtuda Sangob company were ratified by the lower house of Tajikistan’s parliament in early October. The revised agreement was originally signed on May 29, 2025, in Dushanbe, following high-level negotiations between the two countries. Under the initial agreement, Iran was to recover its investment by August 2026, after which the hydropower plant would become Tajik state property. However, under the new terms, Iranian management of the plant will continue until the end of 2032. The total construction cost of the Sangtuda-2 hydroelectric plant was $256 million. Of this, the Iranian government contributed $180 million, Sangob invested $36 million, and the Tajik government provided $40 million. According to Tajikistan’s Ministry of Energy and Water Resources, between the plant’s launch in 2012 and the end of 2023, Barki Tochik purchased 8.9 billion kilowatt-hours of electricity worth $451.5 million. However, the power plant itself received only $122.5 million, roughly 27% of the total value. As a result, Tajikistan’s outstanding debt to Sangtuda-2 reached $329 million. Under the new agreement, this debt will be fully written off. In return, Dushanbe has committed to a new payment schedule over the next six years and four months. After this period, control of the plant will transfer to Barki Tochik. Sangtuda-2 is among the largest joint energy projects between Tajikistan and Iran. Construction began in 2006, with the first hydroelectric unit launched in September 2011 and the second in 2014. The plant is located in the Danghara district of the Khatlon region, on the Vakhsh River. It is the fifth stage of the Vakhsh cascade of hydroelectric stations.

Railways

Turkmenistan and Iran to Build Dual-Gauge Rail Lines at Sarakhs Border Crossing

Turkmenistan and Iran have agreed to construct two new railway lines at the Sarakhs border crossing to enhance freight transport between the two countries, Iranian Railways chief Jabbar Ali Zakeri announced following talks with Turkmenistan’s Minister of Railways, Mammet Akmammedov. The agreement was reached during bilateral meetings in Turkmenbashi, held on the sidelines of the Third UN Conference on Landlocked Developing Countries, Iran’s Ministry of Roads and Urban Development reported on August 12, according to Biznes Turkmenistan. Zakeri stated that the project will include the construction of one standard-gauge and one broad-gauge line connecting the Sarakhs stations on both sides of the border. He emphasized the significance of expanding rail infrastructure to improve regional connectivity and noted that technical discussions between the two countries’ rail administrations would follow shortly. The Sarakhs crossing is a critical transit hub linking Iran to Central Asia and forms part of the International North-South Transport Corridor, aimed at facilitating trade between Asia and Europe. This initiative aligns with Turkmenistan’s broader strategy to diversify its export routes. Despite possessing the world’s fourth-largest natural gas reserves, the country has long struggled to access stable foreign markets. In October 2024, Ashgabat signed a landmark deal to supply 10 billion cubic meters of gas annually to Iraq, its first major export agreement in nearly two decades. While Turkmenistan maintains two gas pipelines to Iran with a combined capacity of 20 billion cubic meters, exports have been minimal since 2017 due to ongoing payment disputes.

Electricity

Afghanistan Generates 250 MW of Electricity, Imports 800 MW from Central Asia and Iran

Afghanistan’s state-owned electricity company, Da Afghanistan Breshna Sherkat (DABS), has signed or prepared agreements for domestic power generation projects totaling 1,070 megawatts over the past 11 months, with 70% of the funding coming from foreign investors, TOLOnews reported. Speaking in an interview, DABS chief Abdulbari Omar said the initiative marks a significant step toward energy self-sufficiency after years of underinvestment in the sector. “In the past 11 months, we have invested 69 billion Afghanis ($1.01 billion), 70% of which came from abroad. This shows we have encouraged foreign investors to enter the Afghan market,” he said. Afghanistan currently produces about 250 MW of electricity domestically and imports around 800 MW from Turkmenistan, Iran, Uzbekistan, and Tajikistan, at an annual cost of $250-280 million. Omar said the country would need between 6,000 and 7,000 MW to meet domestic demand, rising to 10,000 MW if industrial activity expands. He acknowledged the challenges of developing power from wind, water, gas, coal, and waste, but stressed that projects are moving forward with domestic funds and private investment, without relying on the World Bank or other international organizations. Omar also highlighted the problem of unpaid bills, citing 450 million Afghanis ($6.48 million) owed by former political leaders and warlords. “All individuals, from ministers to ordinary citizens, are treated equally under the law,” he said, noting that power has been cut to ministers who failed to pay. Last year, The Times of Central Asia reported that DABS extended its electricity import agreement with Uzbekistan until the end of 2025. The deal, signed in Uzbekistan by Omar and the National Electricity Company of Uzbekistan, remains vital for meeting Afghanistan’s needs. According to the Taliban-controlled Ministry of Energy and Water, Afghanistan requires around 1,500 MW of electricity, with roughly 720 MW imported and the rest generated domestically.

Cotton

Tajik Cotton Exports to Iran Reach Record Levels

Since the start of 2025, Iran has imported more than 30,000 tons of cotton fiber from Tajikistan, accounting for over 83% of the country’s total foreign sales of this product. The value of these exports has reached $45.7 million. Geography and Structure of Exports Khurshed Zuhurzoda, First Deputy Director of the Tajikistan Export Agency, said Iran’s demand is driven by a shortage of raw materials for its domestic textile industry. According to the Iranian Cotton Fund, the country’s annual cotton demand stands at around 180,000 tons, while domestic production meets only 70,000-80,000 tons. Geographic proximity and the high quality of Tajik fiber have made it one of Iran’s primary import sources. From January to June 2025, Tajikistan exported 36,300 tons of cotton fiber worth $54.6 million to foreign markets. Of this, more than 30,900 tons, 83.61% in both value and volume, went to Iran. Other buyers included Russia ($4 million), Turkey ($1.97 million), Pakistan ($1.1 million), and China ($286,000). The Khatlon region was the largest domestic supplier, providing $29.6 million worth of exports (54.22%), followed by Sughd with $25 million (45.78%). The average export price per ton was $1,506. Negotiations on Expanding Cooperation On July 30, during the 10th Consultation of the Ministers of Agriculture of Shanghai Cooperation Organisation (SCO) member states in China, Tajik Agriculture Minister Kurbon Hakimzoda met with Iranian Agriculture Minister Gholamreza Nouri. Talks covered topics ranging from cotton supplies to the introduction of smart farming systems. Priorities included food security, development of greenhouse complexes, fish farming, organic agriculture, digital technologies, internationally accredited laboratories, climate change adaptation, and joint projects for product processing and packaging. Nouri emphasized that strengthening agricultural ties with neighboring countries is a strategic priority for Iran. Hakimzoda, in turn, noted “satisfactory progress” in implementing existing agreements. Prospects: Moving from Raw Cotton to Value-Added Exports Tajikistan forecasts raw cotton production to grow from 422,000 tons in 2026 to 437,000 tons in 2028. Cotton fiber output is projected at 150,000 tons, while yarn production will increase from 49,000 to 54,000 tons. The government’s export strategy aims to gradually reduce unprocessed cotton exports, from 72,000 tons in 2026 to 56,000 tons in 2028, while boosting yarn exports from 14,000 to 18,000 tons. Agricultural expert Bakhodur Khaito said this shift could alter trade arrangements with Iran. “With a reduction in direct fiber supplies, Dushanbe could offer Tehran more yarn, develop joint ventures, localize processing, and promote finished products to third markets,” he noted.

Agriculture

Kazakhstan Doubles Barley Exports, with Iran and China Leading Demand

Kazakhstan has doubled its barley exports in the 2024-2025 marketing year, strengthening its position as a key player in the global grain market. According to the Ministry of Agriculture, the country exported 1.82 million tons of barley between September 2024 and August 2025, twice the volume recorded in the same period the previous season. The sharp increase was driven by a strong harvest of 3.84 million tons, robust demand from major markets such as Iran and China, and competitive pricing. Iran emerged as the largest buyer, importing 1.064 million tons, nearly 30 times more than the previous year. China followed with 414,400 tons, while Uzbekistan imported 125,200 tons. The surge in international demand has also pushed up domestic barley prices, providing a boost to local producers. In September 2024, prices ranged between KZT 50,000 and 52,000 per ton; by early August 2025, they had climbed to KZT 85,000-87,000 per ton. The Ministry projects total barley exports for the 2024-2025 season will reach 1.9 million tons. Kazakhstan has also reported a significant rise in wheat exports. Between September 2024 and July 2025, the country exported 12.4 million tons of wheat and flour, a 34% increase compared to the 9.3 million tons exported during the same period in 2023-2024.