Saipa’s CEO Mohammad Ali Teymouri and businessmen from Russia signed the €450 million contract on Wednesday in a ceremony in Tehran, according to a report by Iran’s Trade Promotion Organization (TPO). The deal will enable Saipa to supply 45,000 cars to Russian customers, said the report.

The signing of the deal comes some six months after Iranian carmakers attended the MIMS Automobility Moscow 2022 and reached initial understandings with Russian trade partners for exports of cars to the country.

TPO’s head Alireza Peymanpak, a deputy trade and industry minister, was present in the Wednesday ceremony where the deal between Saipa and Russian importers was signed. Peymanpak said Iranian carmakers have a good opportunity to increase their presence in the Russian car market which he said is worth around $20 billion, Press TV reported. He said Iranian and Russian carmakers are planning to launch joint manufacturing projects in Iran, adding those projects will lead to a major increase in exports of cars and parts from Iran to Russia.