Nuclear plant building site
Christian Ohde / Global Look Press
Russian experts will help the Atomic Energy Organization of Iran (AEOI) construct two new nuclear power plants in the country's southern city of Bushehr, according to Iran's Energy Minister Hamid Chitchian. "The contract has been signed between the AEOI and Russia, and includes building two 1,000-megawatt nuclear power plants, the construction of which is about to start," said Chitchian. The minister added that the construction of a third joint power plant with Russia, with the capacity of 1,400 MW, has already begun.

Last year, the Iranian vice president and head of the country's Atomic Energy Organization, Ali Akbar Salehi talked about the plans to construct two new nuclear units in cooperation with Russia. He stressed that the process could take up to ten years and would cost $10 billion. Earlier this year, Russian Energy Minister Alexander Novak said Moscow wanted to finalize the agreement with Iran and help the country build more power plants. Moscow and Tehran have been deepening ties in a number of sectors, including oil, defense, and fisheries.

Following a decade of total economic isolation energy-hungry Iran is eager to start building power plants and update its energy infrastructure. Russian companies are likely to be among the preferred bidders. Russian energy major Gazprom has sealed a cooperation agreement with its Iranian counterpart for the development of local gas deposits. During his visit to Moscow last month, Iran's President Hassan Rouhani highlighted the importance of the energy sector in bilateral relations and the possible creation of a free trade zone between Iran and the Eurasian Economic Union that includes Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan.