Public joint-stock company Azovobschemash (Mariupol, Donetsk region), the flagship company of the leader of Ukrainian heavy engineering Azovmash Group, will ship 3,000 wagons to Iran, the Ukrainian Embassy in Iran has reported.

The cost of the agreement signed with the help of the embassy exceeded EUR 100 million.

"This is only a first agreement to supply Azovobschemash's products to Iran. The total need of Iranian state-run companies Pars Wagon and Kors Wagon exceeds 35,000 wagons, gondola cars and tank wagons. Thus, the total potential of Azovobschemash's cooperation with Iranian enterprises is over EUR 1 billion," the embassy said.

Early August Ukrainian Ambassador to Iran Serhiy Burdyliak said in an interview with Iranian Tasnim news agency that Azovmash and Kriukov Car Building Works (KCBW) are holding talks with Pars Wagon and Kors Wagon on creation of joint ventures to work in Iran.

On July 13, 2016, Ukraine's Infrastructure Ministry and Infrastructure Ministry and Roads and Urban Development Ministry of Iran signed a memorandum of understanding.

Iran has invited Ukraine to build 1,000 kilometers of railroad tracks in Iran and participate in projects worth $10 billion provided by Teheran for modernization of railway infrastructure and development of intermodal transportation.