As the global economic order continues to shift toward multipolarity, Iran has steadily emerged as a significant force in the broader Asia region. Bolstered by deepening ties with Russia and China and a formal role within BRICS+, Iran is redefining its international economic posture through strategic investments, infrastructure development, and regional cooperation.
This year, Russia officially became Iran’s top foreign investor, committing nearly $8 billion to large-scale infrastructure projects, primarily in energy and gas, positioning itself as Tehran’s most significant economic partner.
The two nations are in advanced talks over a landmark agreement that would deliver up to 55 billion cubic meters of Russian natural gas to Iran annually. These developments are part of a broader 20-year strategic partnership treaty signed earlier in 2025, which lays the foundation for deep economic, energy, and political alignment between the two countries.
Speaking to TV BRICS, Russian Ambassador Aleksey Dedov emphasised that Iran is “one of the highest priorities” for Russian foreign policy. This strategic prioritisation is evident in the breadth of bilateral cooperation, which spans energy, rail, banking, and cultural diplomacy.
With trade forecasts projecting a rise from $4 billion to $10 billion in the coming years, both nations are accelerating efforts to integrate their economies while jointly navigating global sanctions and geopolitical pressures.
Meanwhile, Iran is also becoming a key logistical hub in China’s Belt and Road Initiative (BRI). A new direct rail link between China’s industrial city of Xi’an and Iran’s Aprin Dry Port near Tehran began operating this year, slashing transit times from 30 days to just 15.
This railway not only strengthens bilateral trade but also integrates Iran into a wider Eurasian transport network that bypasses traditional maritime chokepoints, such as the Suez Canal. With additional investments in the International North-South Transport Corridor (INSTC) and cross-border links to Central and South Asia, Iran is positioning itself as a land bridge between East and West.
Iran’s growing involvement in BRICS further reinforces these efforts. Now a formal member of the expanded BRICS+ platform, Iran is gaining access to alternative financial mechanisms, such as the New Development Bank, and is actively participating in calls for global governance reform.
At a recent BRICS Parliamentary Forum held in Brasília, Iranian representatives joined calls to move away from dollar-based settlements and toward a more multipolar global financial system.
Iran’s strategic calculus is increasingly focused on economic resilience and regional integration. The combination of Russian investment, Chinese infrastructure partnerships, and alignment with the BRICS agenda reflects a broader “Look East” policy that Tehran has systematically cultivated.
This strategy enables Iran to diversify its economic dependencies, resist Western sanctions, and assert itself as an indispensable player in Asia’s evolving financial landscape.
In parallel, Iran is using soft power to complement these hard infrastructure and trade initiatives. Cultural exchanges, particularly with Russia, have gained momentum, with joint festivals and academic cooperation underscoring a shared civilizational narrative that supports the deepening of political and economic ties.
Iran is an Emerging Economic Power
Iran is rapidly consolidating its position as a key economic power and connectivity linchpin in Greater Asia. Bolstered by deepening partnerships with Russia, its top investor, and becoming an integral player in the China-led Belt & Road and BRICS-financed frameworks, Iran is not just navigating today’s geopolitical currents; it’s helping to reshape the continental economic order, steering regional trade, finance, and infrastructure away from Western-centred systems.
So, Iran’s role is no longer that of a peripheral state under pressure. Instead, it stands at the crossroads of a new continental order, an energy powerhouse, a trade corridor, and a geopolitical fulcrum shaping the future of Asia’s economic landscape.
Sources
- Financial Times: Iran and Russia boost military and intelligence ties
- TV BRICS: Aleksey Dedov, Russian Ambassador to Iran: Iranian direction is one of highest priorities for Russian foreign policy
- TV BRICS: Iran–China rail link strengthens trade and reshapes regional connectivity
- TV BRICS: BRICS parliamentary representatives call for reform of global governance
- TV BRICS: Russia becomes Iran’s top foreign investor in 2024
- Reuters: Iran, Russia agree on 55 bcm of gas supplies, nuclear plant funding
- AP: Russia and Iran sign a partnership treaty to deepen their ties in the face of Western sanctions
