Is Russia now biggest foreign investor in Iran? What trade official said
Iran-Russia Relations: Iran and Russia have strengthened ties significantly since Moscow’s invasion of Ukraine in late February last year.
Russia has overtaken China as the biggest investor in Iran, newspaper Donya-e Eqtesad reported, citing a senior trade official.
Ali Fekri, head of the state-run Organization for Investment and Economic and Technical Assistance of Iran, said Saturday that Russia had spent some $2.7 billion on two oil projects in the western province of Ilam since hardliner Ebrahim Raisi’s government came into power in August 2021.
The United Arab Emirates, Afghanistan, Turkey and China were the next biggest investors. While China had “more capacity,” it reduced spending over the past year, limiting it to logistics centers or border facilities that are linked to its own exports to Iran.
Iran and Russia have strengthened ties significantly since Moscow’s invasion of Ukraine in late February last year. There have been several high-ranking visits and a raft of agreements to expand trade and military cooperation between the two countries.
The Persian Gulf nation has been sanctioned and heavily criticized by the European Union and the US for supplying Moscow with drones that have been used in the war in Ukraine. Iran and Russia are both heavily sanctioned and have been working together to find ways to bypass the penalties.
Fekri said Russia has invested by either sending physical cash to Iran or by using foreign currency traders.