Iran and Russia plan to jointly build eight thermal power plants in Iran that are worth more than $10bn.
In Tehran, Iranian Energy Minister Hamid Chitchian said preparation of necessary grounds are underway for energy cooperation with Russia.
At a meeting with his Russian counterpart, Chitchian said: "The grounds for cooperation between Iran and Russia for constructing thermal power plants worth more than $10bn are provided, and we have planned for partnership in building eight new thermal power plants with the capacity of (generating) 2,800MW (of electricity).
"Four units of these power plants will be built in Bandar Abbas city, two units in Tabas city and two units in the new city of Sahand, and the construction of two power plants in Tabriz city is still in the stage of environmental studies."
Russian Energy Minister Alexander Novak said that the sanctions imposed by the West will not affect the energy cooperation between the two nations.
In addition to construction of the eight thermal plants, Russia will also be involved in the reconstruction of four old power plants in Iran.
Iran's ISNA news agency quoted Chitchian as saying that the two nations have also discussed the construction of hydroelectric power plants and high-voltage electricity transmission networks.
Currently, the trade between the two countries is pegged at $5bn a year.
Russian firms Technopromexport, Inter RAO and its unit Inter RAO Export will be involved in the construction and modernisation of power facilities and delivery of equipment in Iran.
The two nations also plan to discuss possibilities of supplying power from Russia to Iran.