Interstate loan of €1.3 bln allocated for Rasht-Astara railway section project

17 May 2023

 

An interstate loan of €1.3 billion will be allocated to implement the Rasht-Astara railway section construction project, the total cost of the project is €1.6 billion, Russian Deputy Prime Minister Alexander Novak told reporters.


"An interstate loan of €1.3 billion is allocated to implement this project, while the total cost of the project is €1.6 billion," he said.


According to him, the Russian share in the interstate loan is 85%. "[The loan] is reimbursable during the payback period of this project," Novak added.


An agreement between Russia and Iran on the joint construction of the Rasht-Astara railroad section was signed Wednesday in Tehran by Russian Transport Minister Vitaly Savelyev and Iranian Minister of Roads and Urban Development Mehrdad Bazrpash. Presidents Vladimir Putin and Ebrahim Raisi attended the signing ceremony; Putin participated via video link. From the Russian side, the ceremony was also attended by Deputy Prime Minister Alexander Novak, who is on a working visit to Iran.


According to the document, Moscow and Tehran will jointly finance the design, construction as well as the supply of goods and services. The length of the Rasht-Astara line will be 170 km. It is needed to connect overland sections of the North-South international transport corridor, which will increase the economic efficiency of the trans-Caspian route. Presumably, the Rasht-Astara line will be built with the participation of Moscow and Tehran, and the Astara (Iranian city) - Astara (Azerbaijani city) line - with the participation of Moscow, Tehran and Baku.

 

 

GSV "Russia - Islamic world"

Photo: Thomas/Pixabay

Based on materials from TASS