News ID: 188123
Published: 0708 GMT February 21, 2017

Iran-Russia trade surges 70% in 2016

Iran-Russia trade surges 70% in 2016

Trade between Russia and Iran surged 70 percent year-on-year to $2.2 billion in 2016, said Russian Energy Minister Alexander Novak in a meeting with his Iranian counterpart Hamid Chitchian.

Trade turnover was $2.2 billion in 2016 and it rose by nearly $1 billion showing a 70-percent growth, Novak said.

Despite the positive dynamics, the current state of bilateral trade and economic relations is insufficient and parties will undertake all possible steps to further develop cooperation, he added.

There are growing signs that Iran and Russia are preparing for a new era of economic cooperation in which energy will have a central role.

Russia and Iran began the construction of a 1.4-gigawatt thermal power plant in the city of Bandar Abbas in southern Iran on Monday.

In mid-December 2016 Russian company Technopromexport and an Iranian holding company signed an agreement on the construction of a thermal power plant in Iran with Russian investment to the tune of €1.2 billion.

An Iranian deputy energy minister said in January that Russian companies are about to build a power plant and increase power generation at another in Iran.

Based on an agreement signed between Iran and Russia, the Russians will improve the efficiency at the Ramin power plant in Khuzestan Province to 50-55 percent from the current 36 percent, Alireza Daemi said.

Another Russian company will build a 1.4-gigawatt power plant in Bandar Abbas, Hormuzgan Province, he added.

"The two power contracts between Iran and Russia are worth several billion dollars. The details will be announced in the future," Daemi said.

Russia's Inter RAO will boost the efficiency of the Ramin plant — a 1.8-gigawatt station built by the Russians during the Soviet Union.

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