Russia to Loan Tehran $2.85 Billion

7 Juni 2016 – A top Russian official has said Moscow will soon loan Iran €2.5 billion ($2.85 billion). Deputy Finance Minister Sergei Storchak said the Ministry expects to get Cabinet permission in two weeks.Another ‎€2 billion ($2.27 billion) export loan is be granted to Iran by Russian state lender Vnesheconombank, according to Russian media.

President Vladimir Putin said in November that Moscow is ready to provide a $5 billion state loan to Tehran to promote industrial cooperation. However, Storchak indicated that his announcement was of additional money — not just confirmation of Putin’s statement — bringing Russia’s total loan commitment to about $10 billion.Despite January’s implementation of a July 2015 nuclear agreement and the lifting of some US-led sanctions, Iran is still struggling for economic recovery after years of declining of stagnant GDP and rising unemployment.Oil exports have risen 40%, but pursuit of foreign investment and trade is being hindered both by fear of continuing US sanctions and by regime in-fighting.Since Friday, the Supreme Leader has twice used high-profile speeches to warn the Rouhani Government not to be too eager in seeking outside investment, warning against tying Iran to the global economy.Instead, Ayatollah Khamenei is pushing for a “Resistance Economy” of self-sufficiency, without detailing how this will be achieved.

The Government has yet to submit its 2016-17 budget, which was due in December, to Parliament for approval.