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TEHRAN, September 9. /ITAR-TASS/. Russia and Iran are currently discussing “an oil-for-power-plants deal,” two sources, close to the negotiations that are held in Tehran on Tuesday, told ITAR-TASS.The cost of the first stage of the contract under discussion is expected to reach $5 billion.
The project for the construction of seven thermal power plants in Iran by 2017 by Russia’s Technopromexport leading energy engineering company may be offered as the payment for the first oil supplies, said both sources, adding that the contract, if signed, may be included in the currently discussed “oil for goods” agreement. “It’s only one of the agenda items. The sides also discuss the organization of metallurgical production facilities, car assembly and agricultural equipment plants, boosting the supplies of fertilizers and purchase of fruit and vegetables.”
A source in the relevant ministry previously told ITAR-TASS that the Tehran talks’ agenda included possible organization of the Tupolev Tu-204SM planes production in Iran. And a representative of Russia’s VNIImetmash Research and Design Institute of Metallurgical Engineering said his organisation sent a proposal to Iran on the supply of a design solution for the rail-and-structural steel mill with the capacity of 600,000 tonnes per year, and it has also been put on the agenda of the intergovernmental commission meeting.
Technopromexport declined to comment on talks with Iran. To the knowledge of Itar-Tass, negotiations on the possible supplies of Iranian oil are so far impeded by problems in organising interbank settlements, restrictions on the work in Iran’s fuel and energy complex for foreign investors and the lack of port facilities in the Caspian Sea.
Russian Energy Minister Alexander Novak had said that Russia might take part in the organisation of crude oil delivery from Iran on August 6, 2014. The fife-year memorandum of understanding was signed by the two countries’ governments on August 5.
According to Reuters, the deal’s preliminary parameters envisage the turnover of 1.5 billion dollars per month. Iran is ready to supply up to 500,000 barrels of oil per day in exchange for Russian goods and equipment, and Moscow will be able to resell Iranian oil, for example, to China.
In June-July, Technopromexport negotiated with Iran the construction of seven thermal power plants and hydropower plants with the total capacity of 5650 MW for $12.2 billion. And on Tuesday, Aleksandr Novak at a meeting with Iranian Energy Minister Hamid Chitchian confirmed that Tekhnopromexport, Inter RAO and its subsidiary Inter RAO Export plan to participate in electric power projects in Iran - the construction and modernization of power plants and supplies of equipment.
Chitchian said that the memorandum of understanding on these projects would be signed on Tuesday, September 9. “We, together with Mr. Chitchian have held very constructive business talks pursuant to the agreements that had been concluded during my previous visit to Iran on April 27. We noted serious progress on the Technopromexport agreement with Iran’s Tavanir on the construction of new units of thermal power plants — eight — 10 units with the total capacity of nearly 3,000 MW, as well as on the modernization of four units of existing thermal power plants,” Novak said after the meeting.