Russian Federation to provide $5bn state loan to Iran – Putin

The visit comes as Russian Federation nears a third month of military engagement in the Syrian conflict.

“The conversation was of a very constructive nature”, Peskov said.

“This threat should be neutralized wisely and with closer interaction… Russian Federation is ready to offer a state export loan for these purposes worth $5bln”, Putin told journalists after his talks with Iranian President Hassan Rouhani.

“We expect that after sanctions are lifted Iran will prefer to work with the Russian Federation on many tracks especially in hi-tech areas such as aviation, aerospace, radio electronics, shipbuilding”, Russian Deputy Premier Dmitry Rogozin said.

In Tehran, both Putin and Iran’s supreme leader warned against any effort to impose a political settlement on Syria.

Vladimir Putin issued a press release where he stated that Russian Federation will “continue mutually beneficial cooperation in nuclear energy”. We have exchanged (views on the) situation in Syria.

Under the previous contract signed in 2007, Russian Federation was required to provide Iran with at least five S-300 defense system batteries. Shiite powerhouse Iran has staunchly backed Assad, who belongs to Syria’s Alawite minority, an offshoot of Shiite Islam, seeing him as a bulwark against its archrival, Saudi Arabia, and other Sunni monarchies of the Gulf.

He said that the USA insistence on the ouster of Bashar al-Assad – “who is the legal and elected president of Syria” – was among the weaknesses of Washington’s announced policies.

Tehran and Moscow are the regional allies of the Assad government in Syria’s long-lasting conflict. However, despite Putin’s comments in Tehran, speculation has emerged about Moscow being more prepared to see Assad phased out of power as part of a deal, compared to Tehran. The countries that oppose Assad, led by the United States, have said the Syrian leader’s actions against his own people, including the barrel-bombing of civilians, mean he had lost all legitimacy and should leave office.

Putin’s trip was planned before the UN Security Council on Friday authorised countries to “take all necessary measures” to fight ISIS in a France-sponsored resolution one week after the Paris attacks.

President Vladimir Putin has eased an export ban on nuclear equipment and technology toIran, a Kremlin decree published on Monday showed, after Tehran struck a deal with world powers on its nuclear programme in July.

USA officials, however, said there are other obstacles to Russian participation in the U.S.-led coalition of some 60 nations that is hitting the Islamic State in Syria and Iraq.