Russia to loan Iran $7bn

© Morteza Nikoubazl
Iran will be loaned $5 billion by the Russian government, and another $2 billion from the Russian infrastructure bank VEB, RIA Novosti reports.

The Iranian First Deputy Industrial Minister Mojtaba Khosrowtaj confirmed the $7-8 billion loan from Russia.

“Yes, we have reached a high-level agreement. Now it’s the work of the banks to agree on the technical details of this scheme,” Khosrowtaj told RIA Novosti in an interview.

According to Russian Energy Minister Aleksandr Novak, Iran asked Russia for a loan of $5 billion for infrastructure projects, mostly likely electrical power generation and the development of railways.

The loan is expected to boost trade between the two countries. The target is $10 billion, from the current $1.6 billion.

Novak visited Tehran in October, where he announced that Russia and Iran are considering setting up a bank to finance joint projects.