Putin welcomes India-ME-Europe Corridor but questions its feasibility – ET Infra

NEW DELHI: While welcoming the announcement of the India-Middle East-Europe Economic Corridor outlining that it will complement the International North–South Transport Corridor, Russian President Vladimir Putin highlighted that the success of the US-backed corridor will hinge on favourable unit economics.The IMEC was formally announced at the G20 meeting on Saturday wherein India, United Arab Emirates, Saudi Arabia, European Union, Italy, France, Germany and US are the principal partners.

“There is nothing that could interfere with the North-South Transportation Corridor. We should look at the unit economics of the project (IMEC) because at first the cargo has to be carried by rail to make sure it reaches the sea, then cargo shipment from the railway to sea vessels….this double transshipment has a particular meaning for the whole feasibility of the project and that has to be carefully calculated,” said Putin at the Eastern Economic Forum in Vladivostok, Russia.

“I think that (IMEC) will only benefit us and it will only help in developing logistics…at the same time the additional movement of cargo along the corridor is basically a complement to the North-South (Transport) Corridor project that we are developing on our own,” Putin added.

The statement from the Russian President holds significance as relations between the two geopolitical rivals-US and Russia-has been tense due to ongoing conflict in Ukraine.

Putin highlighted that the 7,200-KM-long multimodal International North–South Transport Corridor, which connects India with Russia and Europe via Iran, Azerbaijan and Central Asia, would be more efficient as a corridor.

While the new corridor between India and Europe will bypass the Suez Canal in Egypt, Putin outlined that the canal will remain an important pathway for global cargo transport.

“Scope of cargo transportation is going up, it is growing every year and it seems to me the more routes are available, the better,” Putin added.