Iran to finance oil pipeline

Iran has decided to fully finance the construction of an oil pipeline from Tavriz to Eraskh(Armenia). The total cost of the project will be USD 250 million. However the project is being funded on condition that eventually Armenia will reimburse its share of the costs, Armenian Minister of Energy and Natural Resources Armen Movsesian has said.

Iran’s decision reflects its understanding that currently Armenia faces serious financial difficulties and cannot pay for the project. In the near future Iranian experts will travel to Yerevan to make a final estimation and conclude a financial and technical agreement.

The Minister expressed his hope that the project will start to be implemented in 2009. He also highlighted the project’s importance as a means of securing the country’s energy safety. Iran supplies Armenia with natural gas; and in return Armenia gives Iran electric energy.