TEHRAN, Dec. 18 (MNA) – Two Russian firms signed a contract with the Railways of the Islamic Republic of Iran on Monday to allocate 3 billion Euros for joint production of railcars and locomotives.

Trade Promotion Center of Russia, the Russian Agency for Export Credit and Investment Insurance (EXIAR), and the Railways of the Islamic Republic of Iran signed a contract on Monday.

According to the contract, the Russian firms will provide 3 billion Euros for joint production of railroad wagons, locomotives, and the rail grid equipment.

“To develop the rail network of the country and the infrastructures, $28 billion is to be invested according to the six program of development, and currently with two contracts $5 billion of it has been put into effect,” said Abbas Akhoundi, Iranian Minister of Roads and Urban Construction, on the sidelines of the signing ceremony.

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