Moscow and Tehran’s strong commitment to deepen the cooperation was staged during the third Gas Exporting Countries Forum held in Iran’s capital city Tehran.
The economic and trade cooperation between the long-time allies began to strengthen after the Iran nuclear agreement, which provided ground for removal of the international sanctions on the Islamic Republic.
Russian President Vladimir Putin, who visited Tehran for the forum, said Moscow is ready to extend a $5bln state loan to Iran to promote industrial cooperation, TASS reported.
After his talks with Iranian President Hassan Rouhani, Putin said the sides have selected 35 priority projects in the areas of energy, construction, terminals, railways, etc.
Apart from that, he said, the two countries are set to expand trade relations focusing on diversification of trade and to make a wide use of national currencies in bilateral deals.
Putin highlighted the importance of the long-term contracts and the take or pay principle for the stability of the gas market, investments.
He also added that the Eurasian Economic Union would look at possible establishment of a free trade zone with Iran in practical terms.
The two countries also cemented the economic and trade cooperation with signing of a number of documents on the sidelines of the GECF. Iranian and Russian officials signed seven Memorandums of Understanding.
The documents were signed in the presence of the two countries’ presidents Vladimir Putin and Hassan Rouhani, TASS reported.
A Russian Railways Co (RZD) subsidiary, RDZ International, inked a design and construction contract with the Iranian Railway Company under the project for the electrification of the Gamsar-Inche-Burun railway section.
Russia’s Tekhnopromexport and Iran’s holding company for electricity production at thermal station signed an agreement for the construction of a heat electricity plant with four energy units with a capacity of 350 megawatt and a desalination plant with a daily capacity of 200,000 cubic meters in the vicinity of the city of Bandar Abbas in the Hormozgan Province.
Russia’s Vnesheconombank, Russia’s Export Insurance Agency EXIAR and Iran’s Central Bank signed a memorandum of understanding to promote investment activities, guarantee support, export financing and trade ties.