Russian Bank Opens Credit Line for Iran

The Eximbank of Russia, a leading group supporting exports and imports, signed a deal to supply a credit line for four Iranian banks to finance various projects in the Islamic Republic.

According to the Central Bank of Iran, the Russian bank has signed an unlimited finance agreement with four Iranian banks, namely Sepah, the Export Development Bank of Iran, Parsian, and Pasargad.

The deal comes a few months after the Central Bank of Iran reached an agreement with the Export Insurance Agency of Russia to allow Russian banks to fund projects in Iran.

Based on that agreement, signed in Moscow in mid-October, qualified projects of Iran’s state-run and private sectors could get loans from Russia, while Russian companies would also export technical and engineering services to Iran using such loans.

The Russian credit line for Iran was established a day after Iran’s Parliament Speaker Ali Larijani announced that Tehran and Moscow have set up a joint committee to pursue the implementation of joint projects in the energy and railroad industries.

Iran and Russia have formed a strong alliance in recent years and ramped up efforts to boost defense cooperation, trade ties, and cultural interaction.

Trade interactions between Iran and Russia have grown after the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), that came into force in January 2016.

(Source: Tasnim, under Creative Commons licence)

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