Ukrainian Firms Urged to Finance Oil Projects

Ukrainian Firms Urged to Finance Oil ProjectsUkrainian Firms Urged to Finance Oil Projects

Ukrainian oil and gas companies can succeed in implementing Iranian projects if they finance them through their banking system, Iran's oil minister said.

After holding talks with Ukrainian Vice Prime Minister Zubko Hennadii, Bijan Namdar Zanganeh added that a large number of oil projects are ready to be funded and Ukrainian enterprises should take advantage of the opportunity, Shana reported on Monday.

According to the oil minister, Ukrainian firms' activities in Iran date back to a long time when they were active in Iran's gas industry.

"Ukrainian companies cooperated with Iran in manufacturing gas turbines and compressors, and their collaboration can continue in the post-sanctions era," he said.

Stressing on expanding bilateral ties between Tehran and Kiev in producing state-of-the-art oil equipment, he noted that the two states can also embark on implementing joint ventures in other sectors.

Asked about the Oil Ministry's plan to attract foreign investment, Zanganeh said, "Several schemes have been devised, some of which have something to do with the petrochemical sector. For instance, Iran has to invest $50 billion in petrochemical industry and a part of the investment must be made by foreign companies."

The oil minister believes that as long as Ukrainian enterprises do not embark on financing oil projects through their banking system, their range of operations will be limited.

Pointing to oil and gas upstream sectors' need to attract $130 billion worth of investments, Zanganeh said, "We will not be able to handle such mega projects by relying on our own resources. Therefore, attracting investment is our top priority."