Iran moved an estimated $2 billion to $2.5 billion through a China-based trade mechanism over the past year, using oil revenues to finance imports from China and, in at least one case, military equipment contracts, Reuters reported.
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Iran moved an estimated $2 billion to $2.5 billion through a China-based trade mechanism over the past year, using oil revenues to finance imports from China and, in at least one case, military equipment contracts, Reuters reported.
According to Reuters, the barter-like system enabled Tehran to convert payments from Iranian oil sales into credits for Chinese goods without transferring funds directly through the international banking system.
Two senior Iranian sources and three other people familiar with the mechanism said Iran used the arrangement to purchase medicines, vehicles and communications equipment.
The sources also said the mechanism was linked to contracts worth millions of dollars for the supply of air-defense equipment to Iran over the past year.
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