❗️Russia says preparations finalized to provide $1 billion loan to Iran

Russia has finalized preparations to provide Iran with a $1 billion loan, with the funds ready for transfer once Tehran provides the required bank account details. The transfer has been delayed by disagreements among Iranian government bodies over how the money should be allocated, according to Fars News Agency.

Fars reported that the Planning and Budget Organization wants the funds used for vehicle imports, while the Oil Ministry is seeking to purchase equipment for the oil industry and the Agriculture Ministry wants the money directed toward essential goods.

The loan was first reported in June as the first installment of a planned $20 billion Russian loan to Iran.

The proposed loan comes as Tehran and Moscow expand financial cooperation, including efforts to increase the use of the ruble and rial in bilateral trade and reduce reliance on western financial systems.

In June, an Iranian lawmaker said the planned $20 billion loan would be denominated in rubles and carry an annual interest rate of 6 percent.