Summary The arrangement has enabled Iran to sell oil while obtaining goods worth billions of dollars from China, including medicines, vehicles, communications equipment and military hardware
TEHRAN (Web Desk) - Iran has been using a barter-style trading system with China to circumvent US sanctions, continue selling its oil and avoid the international banking system, according to people familiar with the trade, including two senior Iranian sources.
According to media reports, an arrangement has enabled Iran to sell oil while obtaining goods worth billions of dollars from China, including medicines, vehicles, communications equipment and, on at least one occasion over the past year, military hardware.
Under the confidential system, credit is reportedly extended for Chinese goods imported by Iran in exchange for Iranian oil.
The arrangement has allowed Iranian buyers to obtain various products without manufacturers in China directly conducting transactions with Iran.
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Sources said the mechanism was also used at least once during the past year in deals involving the supply of air-defense equipment to Iran worth hundreds of millions of dollars.
Beyond the barter-style arrangement, Iran is also using other methods to obtain goods and services from Chinese companies without directly passing through the international banking system, according to the sources.
Responding to questions about the barter-style trade, China's Foreign Ministry said it was not aware of the situation described and reiterated that China has consistently opposed unilateral sanctions.
