Iran, Russia to form joint oil, gas companies

Iran's Minister of Industries, Mines and Trade, Mohammad-Reza Nematzadeh, has suggested formation of joint oil and gas companies by Iran and Russia.

Speaking with Russian Energy Minister Alexander Novak, Nematzadeh said for the time being, commercial and industrial relations and cooperation are at a suitable level but much has been left until the ideal status. "The talks can be effective and helpful to remove former problems," he said.

The minister said, "We are eager to expand our ties with Russia in many grounds."

Touching on fall in Iran's exports to Russia and two-fold increase in imports from the country, Nematzadeh said through promoting economic and commercial relations, especially raising volume of Iran's exports of raw materials, farming products, auto and auto parts, medicine and medical equipment, "We should attain a balance in the exports of the two countries."

The Iranian minister said appropriate grounds have been prepared for promotion of mutual cooperation in manufacture of aircraft and auto. "We are interested in cooperation for production of heavy cars, wagon and locomotive."

The Russian energy minister, for his part, said Iran and Russia have reached agreement to raise volume of transactions up to 10 billion dollars. "Cargo trade by the two countries has shown 80 percent increase this year; Though Russian exports attained large portion, efforts were made to strike a balance by raising Iran's share."

He voiced interest of Russian heavy auto manufacturing companies in activity in Iranian market and said his company is interested in cooperation in production of light and heavy autos so that a Russian company will put into operation an assembly line for farming equipment in Iran. 

Novak underlined promotion of cooperation in research and education and said during the visit of Russian delegation; important issues were discussed with the Iranian party for mutual cooperation in energy, aircraft delivery and construction of power plant. 

EA