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