Russia to construct new power plant in Iran

Talks between Russia and Iran raise questions about an agreement between Iran and P5+1.

Russia to construct new power plant in Iran

World Bulletin / News Desk

Ongoing talks between Tehran and Moscow over the construction of a new power plant in Iran continue to raise questions about an agreement with the P5+1 (US, Russia, China, France, UK, and Germany), which is scheduled to take effect on January 20.

In December 2013, Iranian President Hassan Rouhani said that Iran is planning to construct a new power plant.

"We have an agreement that the capacity of the nuclear power plant that Russia will build will be about 5,000 megawatts," Ali-Akbar Salehi, the head of the Atomic Energy Organization of Iran (AEOI), said on December 29 while reiterating the peaceful goals of Iran’s nuclear program.

Under a deal singed in Geneva on November 24, 2013, the P5+1 agreed to lift some sanctions against Iran and provide a guarantee that no further nuclear-related restrictions would be imposed in exchange for a limited six month freeze on Tehran's nuclear activities.

A tampering down of the sanctions were expected after the agreement, but were instead tightened following Iran’s announcement of a second plant.

Sanctions have cost Iran $120 billion in revenue

Iran’s Busehr Nuclear Power Plant - whose original construction began in 1995 - is still not operating at its full capacity. Despite Israeli and US objections, the power plant is expected to be fully operational later this year. The cost of the plant has reached $11 billion, making it the most expensive power plant in the world.

The current sanctions are estimated to have cost Iran $120 billion in lost revenue.

Dating back to 1987, the sanctions originally had little affect. Further restrictions imposed by the UN in 2006 and the EU in 2011 have been a deep impact on Iran’s economy. The Geneva talks and the election of Rouhani have provided an opening for an easing of the sanctions.

Güncelleme Tarihi: 14 Ocak 2014, 18:04