Iran puts brakes on implementation of contracts with Russia by setting new conditions

Iran is impeding implementation of contracts with Russia on construction of a thermal power plant in Bandar Abbas and railway electrification by setting new price conditions, Russia’s Energy Minister and co-chairman of Russian-Iranian intergovernmental trade and economic cooperation commission Alexander Novak said on Monday at the meeting with his Iranian counterpart, Iran’s Minister of Communication and Information Technology Mahmud Vaezi.

"Projects need to be finalized instead of introducing new conditions, because it puts brakes on their implementation. Pricing is in line with the global level," the Russian minister said responding to the comment of his Iranian counterpart.

• Vaezi said that the proposed contractual price was acceptable before the lifting of sanctions, and now it must be brought in line with world prices.

The agreements on the thermal power plant and the railroad were signed during the visit of Russian President Vladimir Putin to Iran in November 2015.

The first agreement provides for the construction of thermal power plants and desalination installations in the vicinity of the city of Bandar Abbas (Hormozgan province). It envisages the construction of the power plant comprising four units of 350 MW and a desalination plant capacity of 200,000 cubic meters per day.

The second agreement provides for electrification of the the Garmsar-Inche Burun railway section.

In February, in Moscow, Russia and Iran initialed documents for opening a $2.2 billion credit line for these two projects.
[tass.ru]
14/3/16