Iran may soon recieve €2.5 billion euro infrastructure loan from Russia to accelerate infrastructure projects there. Accoding to Russia's Deputy Finance Minister Sergey Storchak, the loans depend on contracts now under negotiation.
Mr. Storochak went on to say he expects the contracts to be finalized within the next two weeks. He also stated that the allocation of the funds is as yet uncertain, owing to the varied terrain and other factors Iranian companies may have to deal with.
In November, Russian President Vladimir Putin said Moscow is ready to provide up to $5 billion in state loans to Tehran to promote industrial cooperation. Another €2 billion export loan will be granted to Iran by Russian state lender VEB. The two countries currently have tabled some 35 join projects in energy, port facilities, railway electification and other initiatives. One such project is a €1.2 billion contract with Russian Railways to electrify 495 kilometers of railway, linking north-central Iran to the northeastern border with Turkmenistan. The three-year project will also include building 32 stations and 95 tunnels, significantly improving Russian transit through Iran.
Technopromexport, a subsidiary of Russia's state corporation Rostec, also signed an agreement to construct a 350 megawatt power station in Iran.