The article deals with the process of promotion in 1912-1916 by engineer S. K. Podgursky of the project of construction of a railroad between the important economic center of Transcaucasia-the city of Baku and the settlement ofJulfa on the border with Persia. K. Podgursky's project ofbuilding a railroad between the important economic center of Transcaucasia-the city of Baku and the settlement ofJulfa located on the border with Persia. A direct railway connection between Baku and Julfa was needed to expand economic ties with Persia and create new routes for the transportation of goods between the two countries. The issue of construction of the steel main line became more acute due to the opening in 1914 of the Caucasian front of the Middle East theater of military operations of the First World War. The issue of construction of the steel main line became more acute due to the opening of the Caucasian front in the Middle East theater of military operations of World War I in 1914. It became necessary to improve the supply of Russian units opposing the Turks. Engineer S. K. Podgursky, who was the chairman of the board of the Tevrizskaya railroad running through Persia, was well acquainted with the issues of organizing transport communication with this country. Since 1912, he tried to draw the attention of the Russian authorities to the prospects of establishing a "pig iron road" between Baku and the border town of Julfa. For several years his ideas were ignored and met with opposition. When with the assistance of the Ministry of Foreign Affairs of the Russian Empire the project was noticed by the highest authorities, and Emperor Nicholas II signed a rescript with an order to build the road, it turned out that the state, due to the disorder of the national mechanism, was no longer able to promptly create conditions for the realization of the project of S. K. Podgursky. K. Podgursky's project. The Baku-Julfa railroad was never built. The problems of the inability of the state apparatus of the Russian Empire in a reasonable time to respond to emerging challenges in the last period of its existence are insufficiently studied. Of particular relevance is the study of the manifestations of inertia of the authorities and its impact on the defense capability of the country and the development of its economy. The consequences of serious flaws in the state mechanism of Russia became critical during its confrontation with the countries of the Triple Alliance during the First World War. In addition, the problems of development of transport infrastructure in the Russian-Iranian cross-border region remain on the periphery of researchers' attention. The novelty of the article is determined by the consideration of the influence of the foreign policy department on the promotion of infrastructure projects in the Russian Empire. Based on the analysis of the records of the Third (Central Asian) Department of the Ministry of Foreign Affairs of the Russian Empire, deposited in the fonds of the Archive of Foreign Policy of the Russian Empire, the peculiarities of the structure of the Russian state mechanism, which became an obstacle to the implementation of the Julfa-Bakin railroad project, are identified.