Iran Railway Company and Russian Export Center (REC) signed an agreement to produce 20000 freight carriages, 1000 passenger carriages, and 350 freight locomotives through joint manufacturing.
Under this Memorandum of Cooperation, Russian Export Center will invest EUR 3 billion during next 5 years. It is predicted that cooperation on rail equipments will be increased considerably between the two countries. Also according to the contract, the joint production of 600 freight wagons will be carried out by foreign finance through United Wagon Company of Russia and three Iranian manufacturers (Pars, Kowsar, and Foolad Derakhshan) and with the support of Iran Ministry of Industry, Mine and Trade.
On the further stages, the Memorandum provides for a certain share of localization and joint venture creation on the Iranian territory upon case by case agreement between the participants and depending on the involvement of the Russian companies as suppliers and investors.
The agreement was signed in the presence of Iran Minster of Roads and Urban Development, the head of Iran Railway Company and Russian delegation headed by Petr Fradkov, CEO of The Russian Export Center.
“Iran remains one of the top geographical priorities for the promotion and support of Russian industrial cooperation activities in line with the general trends of the Russian foreign trade as well as the investment and emphasized the determination of the companies within REC Group to contribute into closer cooperation between Russia and Iran by means of both financial and non-financial support at the disposal,” Fradkov said.