Russia And Iran Bolster Economic Ties, From Cars To Planes To Energy

Russian and Iranian companies have discussed joint production of cars, in the latest sign of trade cooperation between the two countries as they try to overcome international sanctions.

Russia’s economy has been hit by more sanctions this year following its annexation of Ukraine in February, while Iran has faced years of trade restrictions over international concerns about its nuclear weapons and other activities.

There has been growing evidence of close cooperation between the two warring nations this year, with Iran accused by the US and others of supplying hundreds of drones to Russia for use in the war in Ukraine. Iran only admitted to giving up a small number before the war.

However, Iranian officials have been reluctant to acknowledge the growing cooperation in other areas.

Iran’s ambassador to Russia Kazem Jalali told reporters in Moscow this week that the two countries had discussed joint production of cars, with Iran’s largest car manufacturers, Iran Khodro and Saipa, both participating in the talks.

Russia’s auto sector has been hit hard by international sanctions, with imports of key goods almost halted. Iranian journalists say that Russian companies have been inquiring this year about getting parts for their cars from Iran. It seems that such negotiations have progressed to the Iranian companies that are supporting the full production.

The development of commercial cooperation

Cooperation in the production of cars is only one of several areas of business in which the two countries have been approaching each other.

On Monday, Russia’s state-owned bank VTB said it would begin offering cross-border money transfer services between Russia and Iran.

In July, the National Iranian Oil Company (NIOC) and Russian energy giant Gazprom signed a $40 billion memorandum of understanding to develop oil and gas fields in Iran and process natural gas (LNG).

This week, Iran’s Energy Minister Ali Akbar Mehrabian was due to travel to Russia to discuss the deal with his counterpart in Moscow.

Less than a week ago, Iran’s deputy minister of industry, mining and trade, Manochehr Manteghi, said there had been talks with Russia on the joint production of passenger planes.

Manteghi said this at the opening of the 11th Iran International Airshow & Aerospace held from Decemebr 13-16 on the Gulf island of Kish. He did not give details about the plans, except to say that it would be for a plane with between 70 and 150 seats.

It is unclear whether this will replace previously announced plans to build passenger planes in Iran.

In June, President Ebrahim Raisi ordered the Iran Aircraft Manufacturing Industrial Company (Hesa) to produce a 72-seat passenger plane “as soon as possible”.

There have been other recent attempts to develop passenger planes in the country that have failed to make headway. In early 2021, Iran’s Civil Aviation Organization (CAO) said there are plans to build a 100-passenger plane.

Under the original plan of 2017, the Iranian Aviation Technology Development Headquarters (IATDH) was scheduled to produce a 72-seat aircraft that was supposed to be ready by 2021.

Source

Also Read :  I Bonds: Last chance to lock in a nearly 10% return on your savings

Leave a Reply

Your email address will not be published.