State-owned monopoly Russian Railways is innegotiations with Iran toelectrify 600 kilometers ofrailroads inthe Islamic Republic ata price ofup to$1.4 billion, thecompany's deputy president told journalists Tuesday."It's aconcrete project, which was discussed with theIranians literally last week," Russian Railways deputy president Alexander Saltanov said, Prime reported. Delegations fromRussian Railways andits subsidiary Russian Railways International will go toIran "in thenear future" towork through thetechnical side ofthe venture, he added.
Thetotal cost ofthe project has not been determined, but could exceed 1 billion euros ($1.4 billion), Saltanov said.
Iranian state broadcaster IRIB earlier reported that anIranian delegation, including executives fromIran's state-owned rail corporation, signed amemorandum ofmutual understanding onthe project with their Russian counterparts during avisit toMoscow last week.
Russian Railways head Vladimir Yakunin aclose Putin ally currently blacklisted bythe U.S. over Russia's annexation ofCrimea inMarch said during themeeting that Iran is one ofRussia's most important partners, particularly inthe sphere ofrailway transport, according tothe report.
Yakunin added that thecurrent international situation will allow Russia andIran tosign important bilateral economic documents inthe near future, IRIB's report said. Moscow has been onthe hunt tobolster ties with its allies inAsia amid tense political relations with theWest andthe impending threat ofthe U.S. andEU implementing anew round ofsector-wide economic sanctions against Russia forits perceived role inthe Ukraine crisis.
Ahmad Khodaei, deputy head ofIslamic Republic ofIran Railways, said during themeeting that work onthe contract may be completed within thecoming month.
This development ineconomic cooperation follows news late last month that Iran expects tosign adeal with Russia bythe end ofAugust onthe construction oftwo new nuclear reactors. Russian contractors built Iran's only existing nuclear reactor, theBushehr power plant onIran's Gulf coast, which went online in2011.
By The Moscow Times
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