Iran has adopted a covert trade mechanism aimed at reducing the impact of sanctions on its oil exports, using crude revenues as credits to finance billions of dollars in purchases from China.
The transactions reportedly went beyond ordinary commercial goods and included military-related equipment, providing Tehran with an alternative channel for securing supplies amid mounting financial restrictions and US sanctions.
China, meanwhile, has benefited from continued access to Iranian crude at discounted prices, while the arrangement has helped shield Chinese companies and banks from greater international scrutiny over their dealings with Tehran.
The mechanism comes as Iran faces increasing economic pressure from sanctions linked to its nuclear program, prompting Tehran to seek alternative financial and trade arrangements to sustain oil exports and secure essential imports.
