Envoy: Russia’s five-billion-dollar investment in Iran finalized
The Iranian ambassador to Moscow announced on Thursday that Russia had finalized a $5 billion segment of its planned $8 billion investment in Iran's oil sector, with the remaining contracts progressing towards completion.
"Based on the agreement between the two countries, Russia is set to invest eight billion dollars in Iran's oil projects. To date, nearly five billion dollars of this amount has been finalized, and the remaining contracts are progressing toward finalization," Kazem Jalali was quoted as saying by IRNA.
In a meeting with a group of prominent Russian Iranologists, Jalali elaborated on Russia's investments in Iran's energy and oil sector, emphasizing, "In 2024, Russia was the largest foreign investor in Iran."
Referring to the signing of the Comprehensive Strategic Partnership Treaty between Iran and Russia and the entry into force of the Free Trade Agreement with the Eurasian Economic Union, the Iranian envoy stated, "The relations between the two countries have now been elevated to the level of strategic relations, and there are high-level exchanges between the officials of the two countries."
Significant opportunities
He added that, "The entry into force of the Free Trade Agreement with the Eurasian Economic Union, the continuation of negotiations on the project for transferring Russian gas through Iran, the acquisition of 50,000 hectares of land for the construction of the Rasht-Astara railway to complete the North-South Transport Corridor (INSTC) and its transfer to Russia for the purpose of commencing geological studies, are among the significant opportunities before the two countries."
Jalali cited the development of monetary and banking relations between the two countries as another example of the enhancement of bilateral ties, stressing, "The MIR and Shetab networks have been interconnected, providing the possibility for bank transfers and payments for small-scale trade, Iranian students in Russia, and tourists. This project will be further developed in the future."
SCO bank ‘important step’ towards ditching dollar
Also, in an interview with IRNA, Jalali, referring to Iran's proposal regarding the establishment of a joint bank for the member states of the Shanghai Cooperation Organisation (SCO) at the meeting of the Central Bank Governors of the member states in Beijing, described this initiative as "an important step towards de-dollarization and the realization of a multipolar order."
The ambassador described the participation of SCO member states in the process of de-dollarizing the global economy and the use of national currencies or currencies other than the dollar in trade exchanges as effective in this regard.
Jalali also considered the effort to expand trade with SCO member states through the creation of a common market as another step towards the common interests of the members.
The Iranian diplomat further described the development of trade with SCO members within the framework of bilateral or multilateral consultations as important, and regarded the formation of digital connectivity between national economies as an effective step in this area.
The ambassador of Iran to Russia further described the cooperation of SCO members in developing transport and transit infrastructure as important, stating, "Appropriate investment in this sector can pave the way for the full realization of the member states' capacities within this cooperation framework."
In another part of the interview, Jalali, referring to the 20th anniversary of Iran's presence in the SCO since 2005 as an observer and its full membership since July 2023, emphasized "the important position of the SCO in Iran's regional cooperation within its surrounding sphere."