Russia is ready to provide 2.5 billion Euro loan to Iran

The total amount of two loans to Iran will amount to about 2.5 billion Euros, the Russian Deputy Finance Minister, Sergiy Storchak, said. "The total amount of the two loans is about 2.5 billion Euros. One is a little more, the other is a little smaller," TASS quoted the official as saying. Storchak said that the Finance Ministry expects the negotiations will be completed and loan documents signed within two weeks.

"The domestic procedures of the parties have been completed. This issue will probably take two weeks. During this time we expect to receive the government's decision, authorizing the Ministry of Finance to finalize the negotiations and to sign the documents. We will determine the readiness of the Iranian Ministry of Finance, as always, at the right time and in the right place," he said.

In 2016 Russia plans to provide Iran with the first $2.2 billion of state credit. The total amount is $5 billion, as earlier reported by the First Deputy Prime Minister, Igor Shuvalov. The first tranche will be spent on projects for the development of electric railways in Iran with the participation of Russian Railways and the construction of the country's thermal power stations by Russian companies.

The two governments worked out two types of financing. Money can be allocated either under the guarantees of the Iranian State or under the guarantees of Iranian banks. The final decision has not yet been reported.

In March, the Russian Minister of Energy, Oleksandr Novak, said that Iran is not in a hurry to carry out its part of the contracted terms for the construction of thermal power plants in Bandar Abbas and the electrification of the railway for the Garmsar/Inche/Borun route. The Iranians insisted that the rates on the joint projects be reviewed in connection with the new market realities after sanctions against Iran were lifted.

  Russia, Iran, loan