Russia to loan Iran $1bn for constructing power plant

Moscow is set to allocate a USD one-billion loan to Tehran for the construction of a power plant in southern Iran, says Russian Minister of Energy Alexander Novak.

“A draft agreement on two credit extensions has been prepared. The total amount is 2.2 billion euros with one billion euros for construction of a power plant in Iran," Novak said after a meeting with Iranian Minister of Communications and Information Technology Mahmoud Vaezi in Moscow.

During the Friday meeting between Vaezi and Novak, who co-chair the Iran-Russia joint economic commission, the two sides agreed on a five-year strategic cooperation plan, RT reported.

The Iranian and Russian ministers signed a contract for the construction of a power plant in Iran's southern province of Hormozgan. The four generators of the power plant will have a 1,400-megawatt capacity.

The Russian minister further said Tehran and Moscow have been working on steps to facilitate trade and economic cooperation.

“In the last half year, we have been working on simplifying procedures that restrain economic trade flows, including an agreement on investment protection and capital contributions, and other agreements on the simplification of the visa regime," Novak added.

He noted that almost all Russian oil and gas companies have expressed their willingness to expand cooperation with Iran in energy exploration and production projects in the Islamic Republic.

The Iranian minister, for his part, said he has held fruitful talks with the Russian energy minister and added that the two sides managed to make “very important decisions."

“We made some important decisions today. [We agreed on] an industrial road map document will be signed as soon as possible. [We agreed on] an energy working group will be set up. [We agreed on] a housing, urban development and construction working group will be set up,” Vaezi said.

It was the first meeting between Vaezi and Novak since January 16, 2016, when Iran and the five permanent members of the UN Security Council - the United States, Britain, France, China and Russia - plus Germany started implementing the agreement they reached on Iran’s nuclear program on July 14, 2015.

The deal, known as the Joint Comprehensive Plan of Action (JCPOA), envisages Tehran scaling back its nuclear program in return for the lifting of all nuclear-related sanctions on the Islamic Republic.

The two ministers had previously met in Moscow in December last year when sanctions on Tehran over its nuclear program were still in place.

The removal of sanctions has opened a new chapter in Iran’s cooperation with Russia which seeks to improve relations with Tehran in the banking, energy and tourism sectors.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk