Iran’s Industrial Development and Renovation Organization (IDRO) announced a $2.9 billion agreement with Russia’s Transmashholding Company to establish a rail wagon joint venture in which Transmashholing would hold an 80% stake. The Russian company’s CEO, Kirill Lipa, said the deal would see the production of 300 to 400 units per year. Some stock may be delivered from Russia, but the aim is to develop production lines in Iran, including at factories owned by Wagon Pars company, a subsidiary of IDRO. Iran’s Deputy Foreign Minister Abbas Araqchi proclaimed the deal as a sign that “negotiations and exchange of delegations are bearing fruit.”
Transmashholding is Russia’s largest railway equipment manufacturer. France’s Alstom and the Netherlands’ Breakers Investments both hold shares in the company. Alstom separately agreed last week to build 1,000 subway cars at IDRO factories. IDRO was added to the U.S. Treasury Department’s Specially Designated Nationals (SDN) list on August 3, 2010, but was removed in January 2016 as part of the Joint Comprehensive Plan of Action.