Russia-Iran alliance bolstered with multi-million dollar oil fields deal
The $742 million will see Russia's Zarubezhneft work with private Iranian company Dana Energy to boost production at the Aban and Paydar fields in Ilam, close to the Iraq border.
It will see production boosted from 36,000 to 48,000 barrels of oil per day.
Zarubezhneft will put up 80 percent of the capital, leaving Dana Energy will cover the rest.
"Increasing the production from these two fields will bring some four billion dollars to Iran" over the coming years, Iran's Oil Minister Bijan Namadar Zanganeh said at a signing ceremony in Tehran.
It is the country's first such deal with a Russian firm said National Iranian Oil Company head Ali Kardor.
"On the political front, relations with Russia are at the highest level, but in the economic sphere they have not yet reached" the same level, he said.
It comes as fears mount that the US could pull out of a nuclear deal with Iran, which could see the country hit with sanctions and Western countries apprehensive about pursuing new investments.
Wednesday's was Tehran's second deal with a foreign energy firm since the signing of the nuclear accord with world powers, after a $4.8 billion agreement was agreed between Iran and French energy giant Total.
Russia and Iran have strengthened their relationship through a military alliance in Syria to bolster Bashar al-Assad's regime.