Russia’s Power Machines Company has agreed to finance development and modernisation of an Iranian power plant, according to an Iranian official.
“The Russian firm will finance the project to modernize and develop Ramin Power Plant in Ahvaz, Khuzestan Province”, Mohsen Tarztalab, managing director of Iran’s Thermal Power Plant Holding Company, was cited by Financial Tribune.
The agreement came after the Iranian state company TPPHC signed a Memorandum of Understanding (MoU) with the Russian firm in Tehran on Friday. The document was signed in the presence of Iranian Energy Minister, Reza Ardakanian, who also chairs the Iran-Russia Joint Economic and Trade Cooperation Commission.
"The project is expected to cost $510 million. Iranian companies will cooperate with the Russian side to rebuild and renovate the plant,” added Tarztalab, according to Iran’s economic English daily.
Located in southwest, Ramin plant is a natural gas-fired power plant spread over 156 hectares of land. It has 6 traditional thermal units with total capacity of 1,850 megawatts of electricity.
The cocoperation between Iran and Russia comes in the wake of unilateral US sanctions on Tehran and any country that does business with the country. Moscow, along with China and three European countries, Germany, France and the United Kingdom, have refused to leave the 2015 international nuclear treay with Iran and reimpose economic sanctions.