Russia Engine Firm, Iran Oil Company in Contract Talks

A subsidiary of Russian state defence company Rostec, United Engine-building Corporation (UEC), is preparing a 50-70 billion rouble ($635-890 million) supply contract with Iranian oil firm Kala Naft Tehran, Russia's TASS news agency reported on Wednesday.

 

If successful, the contract would further strengthen commercial ties between Moscow and Tehran after the rolling back of Western sanctions on Iran over its nuclear programme last month.

 

A top adviser to Iran's Supreme Leader Ayatollah Ali Khamenei, Ali Akbar Velayati, said in Moscow last week Iran and Russia had initialled contracts worth around $40 billion for projects including power-engineering and railway works.

 

"We have a framework contract with Kala Naft - a subsidiary of the National Iranian Oil Company," TASS quoted UEC Deputy General Director Sergei Mikhailov as saying.

 

"We see supplies for a large number of devices, for energy and gas-pumping projects."


(Reporting by Jack Stubbs; Editing by Katharine Houreld)