How Russia tries to take advantage of its broken trade with the West
- 2 years ago
Russia is cut off from trade with the West as sanctions are hitting Russia's economy. Vladimir Putin's government lacks revenue from exports like oil and timber. The Russian president wants to bypass the blockade with the help of new partner countries. Russia is naturally looking elsewhere to do business. That's where a new trade route with India comes in, with both countries hoping to speed up bilateral trade.
The usual trade route runs from St. Petersburg to Mumbai in India. A shipping route of about 15,000 kilometers that takes around 40 days. The container ships travel via the Suez Canal to Mumbai before reaching markets all across Asia. The New North South Route is Russia's solution to the trade blockade: via St Petersburg, Moscow, Azerbaijan and Iran to Mumbai. The International North South Transport Corridor is just over 7,000 kilometers, half as long as the usual route. Companies could save an average 20 days worth of transport and the costs that go along with it. The new route could replace lost trade, it seems what's Europe's loss could be Asia's gain. What makes it so attractive for the regions?
#TradeRoutes #Russia #India
The usual trade route runs from St. Petersburg to Mumbai in India. A shipping route of about 15,000 kilometers that takes around 40 days. The container ships travel via the Suez Canal to Mumbai before reaching markets all across Asia. The New North South Route is Russia's solution to the trade blockade: via St Petersburg, Moscow, Azerbaijan and Iran to Mumbai. The International North South Transport Corridor is just over 7,000 kilometers, half as long as the usual route. Companies could save an average 20 days worth of transport and the costs that go along with it. The new route could replace lost trade, it seems what's Europe's loss could be Asia's gain. What makes it so attractive for the regions?
#TradeRoutes #Russia #India