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By Trend

Volvo submitted the details of a type of 200-million-euro cooperation model to Iran whereby the Swedish construction equipment company will supply heavy machinery and equipment to the Islamic Republic.

Representatives from VOLVO Construction Equipment Company held a meeting with Iranian Deputy Minister of Industry, Mining and Trade Mehdi Karbasian in Tehran on May 23 and submitted the cooperation model to him, IRNA news agency reported.

Karbasian, who is also the Director of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), welcomed the model, saying that this could help rejuvenate the country’s dilapidated fleet of mining machinery.

An official with Volvo, for his part, said the company approves IMIDRO as the guarantor of the entire project.

He, however, added that Iran’s Central Bank and Economy Ministry can also give this guarantee and help the plan go ahead.

As the first phase of the cooperation framework, 200 million euros will be allocated by Volvo and this can be doubled with the help of IMIDRO, the report added.

US President Donald Trump announced on May 8 that Washington was walking away from the nuclear agreement, which was reached between Iran and the five permanent members of the UN Security Council - the US, Britain, France, Russia and China - plus Germany.

Trump also said he would reinstate US nuclear sanctions on Iran and impose "the highest level" of economic bans on the Islamic Republic.

Before Trump’s announcement, Iran’s mining sector had more than $10 billion of investment pledges by the Europeans and Chinese under its belt, but they are backtracking on their promises one by one over the new US sanctions.

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