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According to VTB Capital analyst Vadim Astapovich, construction of the facility may cost US $400 million-$500 million.
An existing smelter in the city earlier planned to organize rail production and launch it by August 2015. If the Russian proposal is accepted and a contract is signed, the smelter will become the first rail producer in the Middle East after the deal is signed.
In August, Russian Railways and Iranian Railways signed a memorandum of understanding to speed up implementation of railway projects in the country.