RUSSIA's Astrakhan Region, on the northern Caspian Sea shore and Iran's Mostazafan Foundation have signed an agreement to establish a shipping company to develop the north-south transport corridor, said the deputy chairman of the regional government, Denis Afanasyev, reports Moscow-based Interfax agency.

Russia lies at the northernmost coast of the inland and largely fresh-water Caspian Sea while Iranian territory lies on its southernmost shore. There is also an east-west Kazakhstan-Azerbaijan rail water route from China to Europe made all the more important after Russia's invasion of Ukraine.

"The leadership of the Mostazafan Foundation, one of the largest Iranian funds, which includes, among other things, shipping companies, visited us. An agreement was signed on the creation of a joint shipping company," said Mr Afanasyev.

He said the Astrakhan port is seeing a significant increase in cargo traffic, which is expected to grow by a third by the end of August.

Belarus has confirmed its willingness to ship some cargo through Astrakhan ports, Mr Afanasyev said.

"Approval is underway with the Transport Ministry of Russia on the volumes that will go specifically in the direction of Astrakhan. We're talking about at least one million tonnes from Belarus in the near future.

"We can double the figure for this route if we have an understanding regarding discounts for railway transit," Mr Afanasyev said.

He said Astrakhan Governor Igor Babushkin plans to hold negotiations on discounts with the management of Russian Railways (RZD).