China has agreed to supply Iran with 50 passenger trains over the next two years in a deal worth nearly $60-million, state press said on Monday.
China’s state-run Changchun Track Passenger Train Company will supply the double-decker trains as well as provide spare parts, tools and technical services, according to the official Xinhua news agency.
The deal, formalised on Sunday with a signing ceremony in Tehran, is worth €47,65-million ($58,85-million), Xinhua said.
China would also provide the Iranian side with a loan covering 85% of the purchase price, it said.
The trains will be delivered to Iran within the next 28 months.
The transport deal comes amid pressure from the United States for China to support a United Nations resolution that could lead to financial and trade sanctions against Iran over its nuclear programme.
United States President George Bush pressed his Chinese counterpart, Hu Jintao, on the issue during a summit in Washington last week.
Bush said the United States and China had a “common goal” that Iran should not have a nuclear weapon or the know-how to make one.
Hu said only that “both sides agreed to continue their efforts to seek a peaceful resolution of the Iranian nuclear issue”.
China has repeatedly voiced opposition to imposing sanctions against Iran. The two nations have strong trade ties, particularly in the energy sector. – AFP