Russia Will Loan $7 Billion to Iran for Joint Infrastructure Projects

Moscow is ready to provide a $5 billion state loan to Tehran for joint infrastructure projects, according to Russian President Vladimir Putin. Russian state lender Vnesheconombank will also lend another $2 billion to Iran for 35 proposed infrastructure projects.

Iranian Supreme Leader Ayatollah Ali Khamenei agreed on the projects after President Putin’s visit to Iran on Monday—this was Putin’s first visit to the nation in eight years.

The projects will include high-tech areas such as energy, port facilities, and railway electrification, according to Putin. After discussions with the ayatollah, Putin also indicated that Russia would continue nuclear power cooperation. “We will give as much assistance as possible to the implementation of the relevant action plan within the framework of the Iranian nuclear program approved by the UN Security Council,” Putin said.

Both countries remain under international sanctions, and since their interests coincide, cooperation between them is likely to increase. “We expect that after sanctions are lifted, Iran will prefer to work with the Russian Federation on many tracks, especially in high-tech areas such as aviation, aerospace, radio electronics [and] shipbuilding,” Russian Deputy Premier Dmitry Rogozin said. “The Iranians emphasize the pivotal role Russia played in the lifting of sanctions, so if we’re active we’ll open a new market for ourselves. We’re counting on it.”

Russia is continuing to gain leverage among the Middle East, while the United State’s influence wanes. This follows a trend that the Trumpet has warned about numerous times. Read “Russia Outmaneuvers the United States in Syria” and “Middle East Replaces America With Russia” to look deeper into this trend.