Russia and Iran signed a $2.5-billion deal on construction of a thermal power station in southern Iran and electrification of a railway line.
The agreement, signed on Monday, was reached during a session of the Russian-Iranian Permanent Intergovernmental Commission on Trade and Economic Cooperation.
The thermal power station is going to be built in Bandar Abbas in the southern province of Hormozgan. The railway line that will be electrified connects towns of Garmsar and Incheborun.
Both countries also signed roadmap on trade and industrial cooperation and a memorandum of understanding between Russia's EXIAR and Iranian banks Parsian and Pasargad.
The five-year road map on industrial expansion between Russia and Iran convers more than 70 projects, according to Russia’s Energy Minister Alexander Novak.
"The signing of the road map in the industrial area may be called a breakthrough," he said, adding that it includes "more than 70 particular projects in the area of industry, machine building, high-tech supplies," he said.
Russia and Iran have increased trade turnover by 80 percent in 2016, Novak said.
The amount of financial payments between Russia and Iran has tripled in 2016, according to Novak.
The minister also added that Russia and Iran are exploring the possibility of creating a Russian-Iranian Islamic bank.
Novak also expressed that the agreement on creation of a free trade zone between Iran and the Eurasian Economic Union (EAEU) may be completed on December 26.
"Heads of states plan to take respective decisions at the meeting of the EAEU Supreme Council planned for December 26," he said.
Meanwhile, according to Iranian Minister of Communication Mahmoud Vaezi, Iran hopes to sign the agreement on creation of a free trade zone with the Eurasian Economic Union in 2017. "We hope that in 2017 Iran and the EAEU will sign a free trade zone agreement," he said.
As was reported earlier the free trade zone agreement with Iran will be implemented in several stages. The fact that Iran is not a member of the World Trade Organization (WTO) complicates the issue of creation a free trade zone.
Vaezi also said the total amount of agreements between Russia and Iran in the oil and gas sector may reach $10 billion.
According to the minister, the oil and gas agreements have to be finalized, but it is already clear that they will boost the trade turnover between the countries. "My projection is that we can reach $10 billion," he said.
Russia’s top oil producer Rosneft is interested in the cooperation with Iranian oil companies in projects to develop big oil and gas onshore and offshore fields in Iran with proven resource base, according to the protocol on the intergovernmental Russian-Iranian commission.
