Russia to Invest $3bn in Iran’s Railroad Industry

The Industrial Development & Renovation Organization of Iran (IDRO) and Russia’s Transmashholding have signed a contract to manufacture railway wagons.

The contract was sealed Monday with the attendance of Minister of Industries, Mines and Trade Mohammad Reza Nematzadeh and Deputy Foreign Minister for Legal and International Affairs Abbas Araqchi.

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.

(Sources: IDRO; Tasnim, under Creative Commons licence)

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