Moscow is ready to loan Tehran up to EUR 2.5 billion for infrastructure projects, Russia’s Deputy Finance Minister Sergey Storchak said.
According to the minister, the allocation of the funds depends on contracts between Russian and Iranian companies. “Not all the risk can be calculated at the development stage. Building railways is one example. The area is mountainous, the costs may increase or decrease,” Storchak said.
The deputy minister adds that the Ministry of Finance expects Kremlin approval for the loan within two weeks.
Among these projects is a EUR 1.2 billion contract with Russian Railways to electrify 495 kilometers of railway, linking north-central Iran to the northeastern border with Turkmenistan. The three-year project will also include building 32 stations and 95 tunnels, significantly improving Russian transit through Iran.
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