TEHRAN (FNA)- Iran, Russia and Azerbaijan signed a cooperation agreement on railroad projects.
The agreement was signed by the three countries during a two-day meeting in St Petersuburg, Russia.
According to the agreement, the involved countries will establish a joint company to carry out the construction phase of a railroad project to link the cities of Rasht and Astara in Iran with another city by the name of Astara located in the Republic of Azerbaijan.
The project will be financially supported by the domestic and international banks of the three countries, the Islamic republic news agency reported.
Officials from the railroad companies of the involved countries have already agreed on the principals of the joint venture but they are to meet in Tehran in May once again to work on the details.
The railroad project is part of a bigger venture to build a north-south corridor, the outline of which was approved in 2001 by Iran, India and Russia.
The corridor will make possible transit of goods from Southern Asia to northern Europe and Scandinavian countries.
Upon completion, the corridor will sharply compete the Suez canal for the time and financial savings it will entail.