June 25, 2024

Athens News

News in English from Greece

Russia will give Iran a loan and use this money to build a railway there

Moscow will finance the completion of the missing section of the Rasht-Astara railway in Iran, that is, it will provide a state loan of €1.3 billion for the project out of €1.6 billion of its cost.

How explains BB.LV, Russia will build Iran the missing section of railways with a length of 162 km for its own money. It is necessary to create a through railway communication between the country and Azerbaijan and Russia within the western branch of the international transport corridor “North-South”. Currently, this section of the cargo is transported by road.

For more than twenty years, negotiations have been ongoing on the completion of the Rasht-Astara section. In 2000, an agreement was signed on the creation of the ITC “North-South”, and in 2005 – an agreement between Iran, Russia and Azerbaijan regarding the construction of a line, which includes the Rasht-Astara section. In 2018, Azerbaijan provided Iran with a loan of $500 million for the construction of the section, but the money could not be spent due to Western sanctions against Iran.

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