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Russia prepares deal on 2.2 billion euro loan to Iran — minister

Russia’s energy minister says representatives of Iranian, Russian Central Banks will meet in August

MOSCOW, July 29. /TASS/. Russia and Iran have prepared a package of agreements on allocating a 2.2 billion euro loan to Tehran, Russian Energy Minister Alexander Novak told journalists on Friday.

"These two draft agreements were coordinated in the Russian government - 2.2 billion euros in total in the framework of agreements will be provided as an inter-state loan," Novak said after talks with Iranian Minister of Communication Mahmoud Vaezi.

Banks' cooperation

According to the minister, Russia and Iran agree to continue cooperation in the banking sphere.

"We agree there is a need to continue working in the field of developing relations in the banking sphere," Novak said.

According to him, this is the main current topic on the agenda. "Development of the interbank lending opportunities, mutual credit, provides additional opportunities and momentum for our companies in cooperation," Novak said.

The minister added that representatives of Iranian, Russian Central Banks will meet in August.

"As far as I know, the nearest meeting between our [Russia and Iran] central banks will be held in August. A relevant working team meeting to summarize once again measures for cooperation development in this [banking] sphere will be held in September," Novak said.

Free trade zone

Novak went on to say that the decision to create a zone of free trade with Iran may be adopted by the end of this year.

"We discussed creation of a zone of free trade, marking progress. We expect by the end of the year, that the joint research group will end its work and present a plan of events to prepare an agreement," Novak said.

Thirteen agreements, over 70 projects

Iran and Russia in the near future will sign 13 agreements, Russian Energy Minister Alexander Novak told journalists on Friday.

"13 agreements will be signed in the near future," Novak said.

"We agreed to prepare an industry roadmap in the coming future with the list of specific projects, over 70, which will be comprised in this roadmap and implemented," Novak said.

Contract on building 4 power units 

Russia’s Technopromexport and Iran’s Thermal Power Plants Holding Company have signed a contract for the construction of four power units of the Hormozgan thermal power plant with a capacity of 350 MW each on a turnkey basis, a TASS correspondent reports from the signing ceremony.

It was earlier reported that Russia would grant Iran a 1.2 billion-euro government export loan to finance the construction of power units of a thermal power plant. The Iranian side will use the borrowings to cover 85% of the construction cost. The loan will be granted for a term of five years at an annual interest of 2.77%

Technopromexport, a subsidiary of Russian state hi-tech corporation Rostec, signed an agreement with the Iranian Energy Ministry on building two electric power plants with a total capacity of over 2,000 MW and worth over $3 billion.