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Signing of the Memorandum of Understanding between REC and RAI

18 december 2017

On December 18th, 2017, the Russian Export Center (REC), which represents the whole Group including EXIAR and Eximbank of Russia, and the Railways of Islamic Republic of Iran (RAI) signed a Memorandum of Cooperation (Memorandum, MoC) on the coordination of efforts for the expansion of trade, economic and industrial relations between the Islamic Republic of Iran and the Russian Federation by means of realization of joint projects in the field of railway fleet industrial production. On behalf of REC, the Memorandum was signed by Peter Fradkov, CEO of REC, on behalf of RAI – by Saeed Mohammadzadeh, Chairman of Board and President of RAI.

The conclusion of the Memorandum took place in the presence of the Minister of Urban Development & transportation of Iran, Mr. Abbas Akhondi, and Mr. Alexey Tyupanov, CEO of EXIAR, during the official visit of Mr. Fradkov and Mr. Tyupanov to Iran, marking a new milestone in the ongoing cooperation.

Under the MoC, the parties agreed to collaborate in the implementation of joint projects for railway fleet procurement in Iran during 5 upcoming years in the amount of 3 billion. Euros. On the further stages, the Memorandum provides for a certain share of localization and joint venture creation on the Iranian territory upon case by case agreement between the participants and depending on the involvement of the Russian companies as suppliers and investors. It will open new opportunities for closer Russian-Iranian cooperation on site with a mutually beneficial long-term strategy. Therefore, the collaboration foresees an important increase in financing towards enhancing of rolling stock sector between the two countries

Mr. Fradkov commented that Iran remains one of the top geographical priorities for the promotion and support of Russian industrial cooperation activities in line with the general trends of the Russian foreign trade as well as the investment and emphasized the determination of the companies within REC Group to contribute into closer cooperation between Russia and Iran by means of both financial and non-financial support at the disposal.

The present Memorandum reconfirms the importance of cooperation not only between the two institutions, but also between the two countries, and lays out a sound framework for joint execution of current projects that involve Russian exporters and servicing companies for the purpose of the Iranian railway fleet development and overall facilitation of Russian-Iranian business cooperation in both private and state sector. 

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