Iran is racing against time to complete land purchases for a key railway project along the Caspian Sea coast that is planned to be built using Russian funding.

According to The Iran Project, Deputy Iranian transport minister Abbas Khatibi said on Wednesday that land purchases for the Rasht-Astara railway in northern Iran had accelerated in recent months amid government efforts to launch the project as soon as possible.

Khatibi said lands had been owned in 30 kilometers along the 162-kilometer rail link, adding that the government expects the land-purchasing process for the project to end in early 2026 with a total investment of $75 million.

However, he denied reports that joint work with Russia on the project, including issues related to planning and other aspects of the railway, have stopped because of delays in land-purchasing.  

The official insisted that the construction of Rasht-Astara railway started in May 2023 when presidents of Iran and Russia oversaw the signing of a deal to finance and build the project.

The remarks came after reports indicated that Russian President Vladimir Putin is not happy with the pace of works in a project where Moscow has committed to provide 1.3 billion euros in loans.

Russia views the railway as a key link on the International North-South Transport Corridor (INSTC), a major trade route that connects the Indian Ocean to the Baltic Sea with some experts believing that it can even rival the Suez Canal.

In addition to the railway project, Russia has also committed to contribute financially and technically to the construction of Sirik power plant in southern Iran as well as to building two new phases in Iran’s only nuclear power plant in the southern port city of Bushehr.