Economy, Domestic Economy

Russia Seeks Closer Ties

Russia Seeks Closer TiesRussia Seeks Closer Ties

Russia is ready to expand cooperation with Iran by launching joint ventures in the areas of aviation, shipping and automotive industries in the wake of lifting of economic sanctions against Iran by the West [over Iran’s nuclear program], Moscow-based Tass News Agency quoted Russian Minister of Trade and Industry, Denis Manturov as saying on Saturday, IRNA reported.

In another development, Tass news agency on Friday quoted Russian Ministry of Economic Development’s press service as reporting that Russian automakers AvtoVAZ, GAZ and KAMAZ are holding negotiations for setting up assembly lines in Iran. “However, no specific agreement has yet been reached,” the press service added.

The press release also indicated that the Russian companies will be challenged by major European and US-based automakers already having a track record of assembling their vehicle models in Iran, “if and when the sanctions are lifted.”

Setting up Russian assembly facilities in Iran was first discussed during  Manturov’s visit to Tehran in November 2014.

Russian automakers had announced earlier that they intend to compensate losses from declining domestic sales by increasing exports, focusing on the traditional markets in Commonwealth of Independent States (CIS) and emerging markets in Asia, Africa, and Latin America.