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Iran unveils 'budget of resistance', gets $5bn from Russia

Christian Fernsby ▼ | December 9, 2019
Iran's President Hassan Rouhani announced Sunday a "budget of resistance" against U.S. sanctions targeting the country's vital oil sector, backed by a $5 billion Russian investment.
Hassan Rouhani
Iranian economy   Hassan Rouhani
Rouhani said the aim was to reduce "hardships" in Iran where a shock fuel price hike last month triggered nationwide demonstrations that turned deadly.

Topics: Iran budget Russia

Rouhani told parliament that the budget of 4,845 trillion rials, or $36 billion at the current street rate, was devised to help Iran's people overcome difficulty.

"We know that under the situation of sanctions and pressure, people are in hardship. We know people's purchasing power has declined," he said.

The budget would benefit from a $5 billion "investment" from Russia which was still being finalised, said Rouhani.

"We hope that $5 billion in capital will enter the country, either through plans that have already been finalised or which will be finalised next year," he said.

Rouhani told lawmakers the budget, which includes a 15-percent public sector wage hike, "is a budget of resistance and perseverance against sanctions".

He said the fiscal plan came in response to the "maximum pressure and continuation of America's sanctions" and vowed it would signal "to the world that, despite sanctions, we will manage the country, especially in terms of oil".