Russian bank signs 1.2B euro finance deal with Iran
Baku, Azerbaijan, Sept. 11
By Fatih Karimov– Trend:
Russian government-owned Bank for Development and Foreign Economic Affairs (Vnesheconombank, VEB) signed a finance deal with Iran’s Industry and Mine bank, worth 1.2 billion euro.
The contract was signed in Moscow with presence of representatives from Iran’s Central Bank and Thermal Power Plants Holding Company(TPPHC), the Iranian Industry and Mine bank announced Sept. 11.
Under the contract, the Russian bank will finance a project for construction of a 1,400-megawatt thermal power plant in Sirik County, Hormozgan province in south of Iran within five years.
The power plant will comprise four units, each with a capacity to produce 350 MW.
Earlier TPPHC announced that the plant is estimated to cost around $1.6 billion.
According to the report, VEB bank has also expressed readiness to provide short-term and long-term credits to the Iranian party without insurance coverage from EXIAR (Russian Agency for Export Credit and Investment Insurance) or government guarantee.
Last month, Iran signed a finance agreement worth 8 billion euros with South Korean Export-Import Bank (Exim Bank), the biggest deal following the implementation of Joint Comprehensive Plan of Action (JCPOA aka nuclear deal), which came into force in 2016.
Under the deal the two parties agreed to allocate an 8-billion-euro credit line for projects carried on by both state-run and private Iranian companies.