Novak: the Russian Federation and Iran are preparing for a number of projects contracts to be signed

TEHRAN, October 22. /Corr. Alexander Levchenko/. Russia and Iran following the visit to Tehran of the delegation of the Russian Federation with heads of the largest Russian companies prepared a number of draft contracts to be signed. This was stated in interview to the correspondent in Tehran, Russian energy Minister Alexander Novak after his visit to the Iranian capital.

“We did a good job, especially because there were first persons of the largest Russian companies. They met with potential partners, presented their opportunities and made proposals on joint projects, – said the Russian Minister. – We held talks in Tehran with Iranian Ministers family. All were constructive meetings were scheduled the way forward. And the number of projects is already being output. We also discussed the financing of projects.”

Earlier, Minister of energy of the Russian Federation noted the existence of certain objective problems with financing of joint Russian-Iranian projects. Responding to the request of the correspondent to comment on recent media information about the application of Iran for a credit line of $5 billion, and also to tell about the sources of funding for future joint projects, Alexander Novak explained: “a Request from Iran only came to the Ministry of economic development and the Ministry of Finance of the Russian Federation. They now consider this request.

Budget interstate loan, is widely used as a financial instrument for stimulating and accelerating bilateral cooperation between the two countries. A similar mechanism we used in relations with Cuba. Such a loan to Iran. But the decision will be made for each individual project”.

To the question of what kind of projects are you currently involved, Alexander Novak explained: “we consider two. The first is the electrification of Railways . On this subject, talks were held between the Russian company Russian Railways and Iranian Railways organization. And the second is the expansion of capacities of thermal power plants. It is about the construction of two units with a capacity of 350 megawatts, which in Iran are from the Russian side – Technopromexport, a subsidiary of “Rostagne”, and with the Iranian state company “Tavanir”.

Answering the question of whether you discussed joint projects associated with a specific Iranian oil fields, the energy Minister, said:

“While a particular field is not specified. Much will depend on how will look like the model contract for the engagement of foreign companies. Iran has stated that the new contracts will be announced in November. Russian companies will be invited to this presentation. As we know, provides for some liberalization for foreign market participants. Only after we will be new conditions of contracts for the field development, we can talk about the interest of our companies to these projects. I might add that Russian companies have expressed readiness to participate in them. Much will also depend on the speed of decision-making by the Iranian side”.

The question of why in a highly representative delegation of heads of major, including Russian oil companies, represented the company LUKOIL, Alexander Novak said: “LUKOIL is interested in working in Iran. The head of the company Vagit Alekperov has visited Iran earlier met with the Minister of oil of Iran Bizhan Namdar Zangane. So, we can say that LUKOIL took the lead on the way to the Iranian market.”

During the two-day visit Alexander Novak in Iran has held talks with the Minister of oil of Iran Bizhan Namdar Zanganeh, energy Minister Hamid Chitchian, Minister of economy and Finance Ali Parties, defence Minister Hossein Dekhana, as well as with heads of a number of other Ministers and agencies of the Islamic Republic to expand bilateral cooperation and increase trade from $2 billion to $10 billion .

“Overall, I believe that the results of the visit can be regarded as a big step forward in the development of Russian-Iranian trade and economic relations”, – said in the conclusion of an interview with Alexander Novak.