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Initial volume of Russia’s public credit to Iran will amount to $2.2 bln — First Deputy PM

The money will be granted to finance the contracts for construction of power plants and electrification of railways, which were signed during the visit of Russian President Vladimir Putin

Russian First Deputy Prime Minister Igor Shuvalov Dmitriy Astakhov/Russian government press service/TASS

Russian First Deputy Prime Minister Igor Shuvalov

© Dmitriy Astakhov/Russian government press service/TASS

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Russia may grant loan to Iran in 2016 — minister

TEHRAN, December 23. /TASS/. The initial volume of Russia’s public credit to Iran will amount to $2.2 bln, First Deputy Prime Minister Igor Shuvalov told reporters.

"We discussed the issue of public credit, we understand its volume, and how they are going to take it. Now we have to agree on details of supply contracts," he said.

"The first [tranche] is $2.2 billion, and $5 billion is a whole credit line," Shuvalov said.

He said that $2.2 billion will be granted to finance the contracts for construction of power plants and electrification of railways, which were signed during the visit of Russian President Vladimir Putin.

"As soon as our industrial forces are ready to supply the equipment and carry out the contracts, we will be ready to fix it in financial documents," Shuvalov said.

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In November, after the talks of Russian President Vladimir Putin with the head of the Islamic Republic of Iran Ali Khamenei and President Hassan Rouhani the countries announced intention to increase bilateral turnover.

Putin said that Russia was ready to allocate a $5 bln public export credit to finance joint projects. He added that 35 priority projects in energy, construction, marine terminals, railways and othere sectors of economy had been selected for cooperation.

Russia’s VEB Bank the Central Bank of Iran are preparing an agreement on granting $2 bln loan to Iran. The funds will be used to finance electrification of the railways in the country and the construction of power plants.

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