Russia to Invest in Iran’s Railroad Industry
TEHRAN (Tasnim) – Iran and Russia on Monday signed an agreement on the joint production of railroad cars, based on which a major Russian company will make a multibillion-dollar investment in Iran.
The Industrial Development and Renovation Organization of Iran (IDRO) and Transmashholding, Russia’s Russia’s largest railway machine-building company, signed the contract in Tehran on Monday.
Based on the agreement, the two sides will inaugurate a joint corporation, 80 percent of whose shares will go to Russians and 20 percent to Iran, CEO of IDRO Mansour Moazzami said.
He also noted that the Russian side has undertaken to buy an Iranian railroad car manufacturing company and make an investment of 2.5 billion euro (around $3 billion) in Iran.
According to Moazzami, IDRO and Transmashholding will coordinate efforts to meet Iran’s demand for 2,000 new subway cars.
Iran has ramped up efforts to renovate its aging railroad industry by attracting foreign investment in light of the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) that took effect in January 2016 and terminated nuclear-related anti-Iran sanctions.
