Tehran to barter oil with Ankara for rail

The Islamic Republic of Iran has reportedly sealed a deal with Turkey to barter oil for rail.

According to Tasnim news agency, the 80-million euro deal will buy Iran nearly 1,000 kilometers worth of rails from Turkey.

The report quoted Turkish Transportation, Maritime Affairs and Communications Minister Ahmet Arslan as saying that Turkey will buy oil from Iran in exchange of train rails.

The minister reportedly said that in light of the deal, Turkish refinery TÜPRAŞ will buy Iranian oil and in exchange, Iran will purchase rails worth 80 million euros.

The official made the comments in Turkey’s Black Sea province of Karabuk which is an industrial hub making train rails.

Arslan also said the deal was of great significance for Turkey.

Back in April, an Iranian official announced an agreement with India on the purchase of rails from that country.

Mohsen Pour-Seyyed Aqaei, the managing director of the Islamic Republic of Iran Railways, said the total weight of the rails bought from India stood at 250,000 tonnes.

“Five percent of the funds required for the purchase will be provided” by Iran, said the official, adding that “the remaining 95 percent of the funds will be provided by the Indian government.”

The official further added that the rails will be used to develop the train network across Iran over the current Iranian calendar year which ends in March 2017.

Officials in Tehran have already emphasized that Iran wants to spend up to $8 billion over the next six years to revamp and expand its railway network.

To the same effect, they have emphasized that the country will need about 3 million tonnes of steel rails to connect all major cities, industrial centers and also ports for faster evacuation of goods.

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