CNN Central News & Network-ITDC India Epress/ITDC News Bhopal: Amid sanctions imposed by the United States and Western countries, a secret financial and trade arrangement between Iran and China has come to light. According to a Reuters report, the arrangement has been in place since at least 2021, enabling Iran to secure payment credits from China for goods and other needs in exchange for its oil. The arrangement has also made possible the purchase of Chinese goods, including military equipment.
According to the report, the entire mechanism operates outside the international banking system. Funds are routed into a special-purpose arrangement through deposits from a China-based entity. Transactions worth about $2 billion to $2.5 billion are estimated to have taken place through it over the past year. About 70 percent of this amount is said to have been used for infrastructure-related projects in Iran, while the remaining funds reportedly went toward payments for medicines, vehicles and other essential goods.
US officials have previously accused networks linked to China and Hong Kong of helping Iran procure weapons and make payments. The US Treasury imposed sanctions on several such institutions in 2026. However, it would not be appropriate to present this directly as confirmation of “air defence systems in exchange for oil.” Available reports show a link between oil-for-credit arrangements and the purchase of military equipment, but they do not independently confirm a direct barter involving any specific air defence system.
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