China to finance Iran’s shipping, tankers companies

Baku, Azerbaijan, Jan. 17

By Khalid Kazimov - Trend:

A Chinese bank is ready to provide Islamic Republic of Iran's Shipping Lines and National Iranian Tanker Company (NITC) with $5 billion, an Iranian minister said.

Iran's Minister of Cooperatives, Labor and Social Welfare Ali Rabei has said that the funds will be used for developing Iranian shipping fleet and tankers, Shana news agency reported Jan17.

However, he refused to provide more details on the Chinese banks and the terms for providing the funds.

Earlier it was announced that the Iranian National Tanker Company is fully prepared to start carrying the country's oil once Iranian oil companies are free from international sanctions.

Through a joint statement with Iranian Foreign Minister Mohammad Javad Zarif on January 16, EU High Representative Federica Mogherini announced that Iran's nuclear related sanctions are lifted.

According to the statement, EU has confirmed that legal framework providing for lifting of its nuclear-related economic and financial sanctions is effective.

Iran and the P5+1 group of countries in July 2015 agreed a landmark nuclear deal to curb Tehran's sensitive nuclear activities in return for the lifting of international sanctions on the Islamic Republic.

Shipping is an engine of Iran's foreign trade but the sector was the first to come under US-led sanctions.

Iran possesses the world's largest proven gas reserves, with a potential to become a top producer. The country plans to build a capacity to export 40 million metric tons of LNG a year.