Top Chinese official orders finance opening for Iran

Business Materials 9 September 2015 12:08 (UTC +04:00)

Baku, Azerbaijan, Sept. 9

By Khalid Kazimov -- Trend:

A top Chinese official has ordered financing for projects in Iran, Iranian Deputy Minister of Industry Mehdi Karbasian said.

Currently an Iranian delegation is in China to arrange financing for two steel projects in Neyriz and Shadegan this week, he said, Mehr news agency reported Sept. 9.

It is regrettable that in the past eight months no financing has been available from China for Iranian projects, which has greatly annoyed the Iranian side, Karbasian said.

According to Karbasian, Iran's annoyance was conveyed to top Chinese officials, whereby an order was issued from China to make financing available for the projects.

Accordingly, talks have been held with the Chinese side and it is hoped that the steel projects will turn operational in the near future, he noted.

The official stated that the steel projects now underway in Iran will be financed with €1.8 billion of Chinese funds. China is currently busy launching seven major steel projects in Iran.

The Managing Director of Esfahan Mobarakeh Steel Company Bahram Sobhani said that Iran is currently the world's 15th biggest producer of steel, but once the projects underway come on stream, the country will become the world's twelfth producer.

China had pledged €3 billion funding for implementing seven steel projects in Iran. The Chinese sides have refrained for months from doing their part despite the fact that Iran has made the advance payment required of it.

Karbasian further pointed out that on the sidelines of the steel negotiations, talks have been conducted on financing two aluminum projects of Jajrom and South.

"The Jajrom project has been shut down for a long time. On the other side, the South aluminum project, which has turned operational, is waiting for funds. A high-profile team from China is coming to Iran next week to hold talks on the issue," he said.

Edited by CN