Russia has overtaken China as the biggest investor in Iran, the Donya-e Eqtesad newspaper reported, citing a senior trade official.
Ali Fekri, head of Iran’s state Organization for Investment and Economic and Technical Assistance, said on Saturday that Russia had spent about $2.7 billion on two oil projects in the western province of Ilam since the hardline Ebrahim government Raisi took power in August 2021. .
The United Arab Emirates, Afghanistan, Turkey and China were the next largest investors. While China had “more capacity,” it cut spending over the past year, limiting it to logistics centers or border facilities that are tied to its own exports to Iran.
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Iran and Russia have strengthened ties significantly since Moscow’s invasion of Ukraine in late February last year. There have been several high-level visits and a series of agreements to expand trade and military cooperation between the two countries.
The Persian Gulf nation has been sanctioned and heavily criticized by the European Union and the US for supplying Moscow with drones that have been used in the war in Ukraine. Iran and Russia are heavily sanctioned and have been working together to find ways around the sanctions.
Fekri said that Russia has invested either by sending physical cash to Iran or by using currency dealers.
