Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China Said to Approve Joining Iran Railway Project

An oil industry installation stands in Mahshahr, Khuzestan province, southern Iran. Photographer: Kaveh Kazemi/Getty Images
An oil industry installation stands in Mahshahr, Khuzestan province, southern Iran. Photographer: Kaveh Kazemi/Getty Images

(Corrects spelling of government body’s name in first paragraph in story initially published Feb. 18.)

Feb. 18 (Bloomberg) -- China’s State Council approved plans to take part in the building of a high-speed railway line in Iran, two people familiar with the matter said.

The project will cost at least $1 billion and the companies participating haven’t yet been set, said the two people, who asked not to be identified because they weren’t authorized to speak publicly about the matter.

China’s decision comes as the U.S., the European Union and their allies have tightened sanctions on Iran for a nuclear program they argue is meant to develop atomic bombs. Iran maintains its program is peaceful.

China and Iran have maintained “normal business cooperation,” Foreign Ministry spokesman Hong Lei told a briefing in Beijing today. China is the biggest buyer of Iranian crude oil.

Current sanctions are costing Iran about $98.9 million a day in lost oil sales, data compiled by Bloomberg show. Iran is to resume stalled multilateral discussions on its nuclear program with the U.S., U.K. France, Germany, Russia and China on Feb. 26 in Kazakhstan. The last round of negotiations between Iran and the group, known as P5+1, failed to yield results.

The U.S. imposed new sanctions earlier this month that would keep importers from paying for oil with dollars and euros.

To contact Bloomberg News staff for this story: Steven Yang in Beijing at kyang74@bloomberg.net

To contact the editor responsible for this story: John Liu at jliu42@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.