Iran to sign first contract to barter oil for restoration of power plant

7/10/2019 10:54:00 PM

Tehran (KNA) - Iran is to sign a contract with a Japanese company for restoration of power plant which will be financed through a barter mechanism involving Iran’s oil.

An official from Iran’s Energy Ministry said that the contract would see Iran barter its oil for “execution” of a restoration project in the Rey Power Plant, an old facility near the capital Tehran which needs renovation.

Mohsen Tarztalab said the contract would be worth €500 million and will be signed in the upcoming week.

“Next week a contract will be signed for funding the restoration of the Rey Power Plant through barter of oil for execution,” said Tarztalab, adding that mechanism has been allowed under a sub-article of an annual draft budget passed by the Iranian parliament last year.

The oil barter contract would be a first for Iran, a country hit by US sanctions which restrict its ability to both sell the oil and receive its revenues in foreign currencies.

Source: PressTV

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