March 15, 2019
The Majlis has quietly voted to allow the Islamic Republic to accept $5 billion in foreign aid from Russia in the form of a loan for infrastructure projects.
Foreign aid is a sensitive topic in Iranian history, with revolutionaries attacking the whole principle of such aid as nothing but a ploy by foreigners to subvert Iran and take over its economy. Because of that belief, the Constitution of the Islamic Republic does not allow the regime to accept aid from foreign governments without a vote of approval from the Majlis.
But this Russian aid has been approved with little debate and no known opposition.
The aid was first bruited by Russia in October 2015. A sum of $2 billion was advanced soon after that and the Majlis has now approved acceptance of the full $5 billion.
As part of its ongoing budget review, the Majlis has authorized to government to accept up to $30 billion in financing from foreign lenders, with much of that expected to come from foreign businesses investing in Iran and part from foreigners buying euro-denominated bonds issued by Iran.
Many analysts say that number is no longer realistic considering how US sanctions have driven most investors away from Iran.
Before sanctions were re-imposed last year, officials also said Iran requires $200 billion in investments for planned oil and gas projects.
The only other sizable government loan to Iran is believed to be the 2 billion euros ($2.3 billion) that China has invested in expanding and upgrading the Abadan refinery.
