Iran has reportedly begun using a barter-style trading system with China to avoid US sanctions and reduce its reliance on the international banking system.
According to people familiar with the trade, including two senior Iranian sources, Iran is using the arrangement to continue selling its oil while obtaining goods and other supplies from China worth billions of dollars.
Under the system, Iranian oil is used to secure credit for Chinese goods imported by Iran. Through this arrangement, Iran has reportedly obtained medicines, vehicles and communications equipment, while the manufacturers of these products did not conduct transactions directly with Iran.
Sources also claimed that the system was used at least once during the past year in deals involving air-defence equipment worth millions of dollars.
Beyond barter-style arrangements, Iran is reportedly using other methods to obtain goods and services from Chinese companies without going through the international banking system.
The sources did not provide further details of the alleged transactions, and the news agency said it could not independently verify the claims.
In response to questions about the reported barter trade, China’s Foreign Ministry said it was not aware of the situation described and reiterated that China opposes unilateral sanctions.
Iran’s missions to the United Nations in New York and Geneva did not respond to requests for comment.
About The Author
