Kavkaz Files ISSN 2975-0474 Volume 33 Issue 1
Author: Silvia Boltuc
Executive Summary
The report outlines the strategic relationship between Dagestan and Iran, highlighting recent developments during a delegation’s visit aimed at enhancing trade and economic collaboration. Key issues addressed include the potential for logistical cooperation through maritime connections between the Makhachkala and Amirabad ports and the historical and cultural ties that underpin these interactions.
The purpose of the report is to assess Dagestan’s role as a vital bridge in Russia-Iran trade and cultural diplomacy, particularly in the face of changing geopolitical dynamics and the growing importance of alternative markets amid Western sanctions.
Background Information
In February 2025, a delegation of Dagestan visited the Iranian province of Mazandaran on a two-day visit to discuss the development of trade and economic ties.
Andrei Natayev, representing the government of Dagestan at the Russian Trade Mission in Iran, and the Deputy Consul General of the Russian Embassy in Rasht, Andrei Aleksandrovich Alenkin, held talks with local authorities, the business community, and the management of the Free Economic Zone.
During the meetings, the Iranian and Dagestani representatives discussed issues of cooperation in logistics, education, and trade. The Iranian side proposed establishing cooperation between the Amirabad and Makhachkala ports to strengthen maritime transport.
The recent meetings are just the latest chapter of a commercial and cultural relationship that spans centuries and lays the foundation for lasting cooperation.
Iran and Dagestan have long maintained robust and mutually beneficial trade and economic relations, with their ties tracing back to the era of the Median state. This longstanding interaction facilitated the spread of Persian language, literature, and elements of Zoroastrianism throughout southern Dagestan.
Historical trade routes, such as the Silk Road passing through Derbent and coastal Dagestan, as well as the Volga-Caspian trade route, have been key in enhancing Russo-Iranian economic interactions throughout the centuries.
Cooperation between Tehran and Moscow in the Caspian region serves as a counterbalance to European-led projects. Conversely, the Russian-led International North-South Transport Corridor (INSTC) has strengthened connections between Caucasian and Central Asian countries with Iran, passing through the Caspian region. As Russia shifts its focus eastward because of Western sanctions, its relationship with Iran, particularly through access to Iranian ports in the Caspian and Persian Gulf, has become increasingly vital.
Regarding cooperation in the Caspian Sea, Iran’s Mazandaran region has become increasingly strategic. During a visit to Russia for the International Forum of Free Trade Zones in Moscow region in October 2024, Iranian representatives met with officials from the Iran-Russia Economic and Legal Cooperation Centre. As a result, a Memorandum of Understanding (MoU) was signed to establish the Russia-Mazandaran Economic and Legal Cooperation Centre within the Mazandaran Free Trade Zone.
The head of the Russian Centre, accompanied by Professor Rival, a Russian scientist specialising in oil and energy, travelled to Iran and toured the Research Institute of Petroleum Industry under the Ministry of Oil. On that occasion, the Russian Centre and the Mazandaran Free Zone signed a bilateral cooperation agreement to promote extensive collaboration in technology transfer and scientific exchange.
Tehran is also leveraging the Russian Free Zones, both in Dagestan and Astrakhan region, to create new business opportunities. On December 2024, for instance, a company that is part of the large Iranian Golrang Holding implemented the construction of a production facility in the LOTUS Special Economic Zone, Roza LLC. The company took advantage of concessional financing from the Industrial Development Fund of the Astrakhan Region and received a loan of 40 million rubles.
The Persian Connection:
Iran’s Historical Impact on Dagestan’s Economy and Culture
Historical sources reveal that Dagestan and Iran have long-standing spiritual, cultural, and economic ties, dating back to the era of the Median state, with the Persian Empire incorporating parts of the country. Southern Dagestan came under Achaemenid rule, and during this period, Zoroastrianism began to spread. The Silk Road passed through both regions, facilitating cultural and economic exchange.
In the Sassanid era, relations between Dagestan and Persia expanded to include military-political ties, with Dagestani military units aiding Persian rulers. The Sassanids enlisted local Dagestani nobility to defend the northern borders, especially the strategic Derbent Pass. The construction of the Derbent fortress strengthened this collaboration, with Persian populations relocated to southern Dagestan to maintain military control. As a result, Persian culture, including poetry and literature, flourished in Dagestan, with Persian language collections found in local libraries.
In the 18th century, the Volga-Caspian trade route, promoted by Peter I, further strengthened the cultural and economic ties between coastal Dagestan and Persia. Persian and Armenian merchants dominated trade in the North Caucasian Republic during this period.
The city of Kizlyar was also a significant trade hub. To promote trade with Persia and other Asian countries, Russia established a trading company, or “merchant society trading,” which held a monopoly on the exchange of Russian and foreign goods via Astrakhan and Kizlyar to Iran and the feudal territories of the Caucasus. In 1758, Russia founded the “Company for Goods Sale and Exchange with Iran,” which facilitated trade through Kizlyar along the overland route and across the Caspian Sea. The Persian block of the city was known as Dezik-aul (Tezik-aul).
According to the Statistics Committee of the Dagestan Region, the Persians lived not only in the cities of Derbent, Port-Petrovsk, Temir-Khan-Shura, but also in Kaitago-Tabasaran, Kyurinsk, Samursk and other regions. According to the family lists of Dagestan city residents for 1886, the total number of Persians was 9242 people.
Shiism in Dagestan: A Limited but Strategic Tool of Iranian Soft Power
Estimates place the Shiite population in Russia between 600,000 (approximately 3% of the country’s Muslim population) and three million (about 15%). Figures vary significantly depending on the source. This community includes Azerbaijanis, Lezgins, Dargins, Tats, and other ethnic groups (Turkic speaking or Iranian-origin ethnic groups).
Approximately 5% of the Muslim population in Dagestan are Shia. Most Dagestani Muslims follow Sunni Islam, specifically the Shafi’i school of thought. Discussions on Shia Islam in the Republic are often politically and socially sensitive, which may explain the lack of publicly accessible information on that topic.
Iran’s foreign policy mainly ignores non-Arab regions, limiting its ability to implement constructive strategies and gain influence among Shiite and similar communities in Russia. Tehran could leverage these religious and ethnic connections to deepen its engagement in the region. Although, historically, while Dagestan maintained elements of Iranian political influence until the 19th century, it resisted direct Iranian religious intervention.
The presence of Shiites in Russia, particularly in the Caucasus, has deep historical roots. One group, sometimes referred to as “Mystical Shiites,” adheres to core Shiite beliefs despite not explicitly identifying as Shia. Many are associated with Qadiri and Naqshbandi Sufi orders, which incorporate reverence for Imam Ali and Ahl al-Bayt.
Dagestan, especially the ancient city of Derbent, is home to a significant Shiite population, largely consisting of descendants of Persian settlers, Azeris, and Lezgins. Other Shiite communities exist in Vladikavkaz (North Ossetia-Alania) and among the Dargins.
Iranian influence in Dagestan extends beyond religious connections to include institutional and educational outreach. Since 1996, the Shiite Muslim Association “Ahlul-Bayt” has operated in Russia, organising religious and intellectual activities. By 2007, they established a regional branch in Makhachkala, the “Ahlul-Bayt Research Centre”. This centre conducts research on Islamic culture, history, and politics in Russia, while also engaging in translation projects, publishing magazines, and organising cultural events.
The monthly publication Kausar, with a circulation of 1,000 copies, has been historically a key vehicle for Shiite discourse in the region. Supported by the Islamic Studies Foundation in Moscow, it was distributed across Shiite religious centres in Dagestan, Chechnya, and the Stavropol region, as well as in schools and public libraries.
By emphasising historical and linguistic ties, particularly through Persian language and literature as the language of Shiism, Iran fosters a shared cultural identity that supports its geopolitical interests. This strategy is evident in its use of Dagestan as a key point of influence, particularly through the port of Makhachkala, which serves as a strategic gateway for Iranian business activities in Russia.
Dagestan as a Strategic Bridge in Russia-Iran Trade and Cultural Diplomacy
Already on December 13th, 1997, the Republic of Dagestan and the Ministry of Development of Iran signed a Memorandum on trade, economic, scientific, technical, and cultural cooperation, followed by agreements in the oil and gas sector. In 2010, partnerships were established with the Gilyan and Mazandaran regions. Over the years, specialised exhibitions of Iran were held in Dagestan.
In 2016, the Iranian investment company “Hamrahian Group” visited Dagestan, leading to six agreements aimed at strengthening trade relations. A key development was the establishment of an interdepartmental commission by the Head of Dagestan on April 20, under Order No. 60, to ensure the smooth turnover of agricultural products between Russia and Iran through Makhachkala port as part of the “Green Corridor” project.
Recent reports indicate a significant increase in trade between Iran and Dagestan. In 2022, the trade turnover between the two regions rose by 44% compared to 2021, with exports more than doubling and imports experiencing a 3% decline.
Dagestan State University has established cooperation agreements with the Cultural Representation of the Islamic Republic of Iran in the Russian Federation, the Ibn Sina Research Foundation, Tehran University, Allameh Tabatabai University, and Gilan University. These agreements facilitate joint scientific projects, staff and professor exchanges, and language internships for graduate and undergraduate students.
At Dagestan State University’s Department of Oriental Studies, a Centre for Iranian Studies actively researches Iran’s history and culture while promoting the study of Persian language and literature.
The Makhachkala International Sea Trade Port’s Role in Connecting Russia and Iran
The Makhachkala Commercial Sea Port is Russia’s only non-freezing and deep-water port in the Caspian Sea, which accepts vessels up to 150 m long and with a draft of up to 4.5 m. The port infrastructure includes a dry-cargo harbour with a transhipment complex with a capacity of 3 million tons per year, cargo and containers with a total of up to 1.2 million tons per year, a railway and car ferry terminal with a capacity of 1.3 million tons, a grain terminal with a capacity of 0.5 million tons per year.
In April 2022, an Iranian delegation headed by the general director of Daryadelan LLC, Hadad Yahya Mehdi, met with the Makhachkala Commercial Sea Port representatives. During the business meeting, the Iranian side stressed that Makhachkala could profoundly contribute to developing relations between Moscow and Tehran.
The Caspian Sea ports of Astrakhan and Makhachkala serve as key Russian gateways to Iran, as confirmed by SpecialEurasia’s interview with Alexandr Sharov, General Director of LLC Neftekhimtrans (part of the Rusiranexpo group).
The Makhachkala port is also a crucial node in the International North-South Transport Corridor (INSTC), linking Russia to Iran and ultimately reaching the Free Economic Zone on Iran’s Qeshm Island in the Persian Gulf. With its ports in the Caspian Sea—such as Astra, Anzali, Caspian, Nowshahr, and Amir Abad—and its strategic position in the Persian Gulf, providing access to international waters, Iran plays a pivotal role in this global connectivity. Iran has adopted a strategy to capitalise on this logistical network, furthering the interests of national companies like the IRISL Group.
In 2023, the representatives of Iranian airlines Pars Golden Sky (PGSC) discussed the prospects of creating an aviation hub in the republic in Dagestan.
Conclusion
Dagestan holds a uniquely strategic role. Its historical ties to Persia and the region’s Free Zones provide Moscow with a diplomatic and commercial bridge to Iran—much like Chechnya serves as a tool for engaging with Gulf markets. Conversely, Persia’s deep-rooted influence in Dagestan offers Iran an avenue for soft power, fostering a favourable environment for its diplomacy, especially given the long-standing trade relations between the two actors.
Iran’s Free Economic and Industrial Zones have become key assets in revitalising the country’s stagnating economy, mirroring similar initiatives in Russia’s Caspian regions. As Russia faces mounting sanctions, its officials have openly praised Iran’s resilience under economic pressure, acknowledging that there are lessons to be learned.
In an increasingly multipolar world, where the West grows more distant and shows little willingness to engage with Tehran and Moscow, the two powers are reorganising their trade along the Eurasian axis, replacing European goods with alternative markets.
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