Iran Circumvents Sanctions through Barter Trade with China
ARK News.. A news agency reported that Iran has resorted to a barter-like mechanism with China that allows it to exchange oil for Chinese goods, in an effort to circumvent US sanctions and maintain the flow of imports into the country.
According to Reuters, Iranian purchases from China under the mechanism, which is based on an “oil-for-goods” arrangement, have reached billions of dollars and included equipment and essential materials, as well as equipment related to air defense.
It also explained that the mechanism allowed Iran to obtain Chinese goods, including medicines, vehicles, and communications equipment, in exchange for oil, reducing the reliance of transactions on the global financial system and limiting the sanctions risks facing participating Chinese companies.
According to the source, the mechanism is believed to have facilitated between $2 billion and $2.5 billion over the past year through special financial and trade arrangements that allow payments to be settled outside traditional financial channels.
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