The supplies of Iranian oil to China are carried out through a barter system, under which China builds infrastructure facilities in Iran, The Wall Street Journal reports, citing Western officials.
According to them, the Chinese insurance company Sinosure and the financial institution Chuxin are involved in the process of supplying Iranian oil. They bypass the international banking system, and part of the funds are used to finance the construction of infrastructure. Last year, approximately $ 8.4 billion in payments for Iranian oil were used to finance major infrastructure projects that China is building in Iran.
The publication notes that China has committed to investing approximately $ 25 billion in infrastructure construction in Iran since the beginning of the century. In addition, the volume of Chinese infrastructure work in the Islamic Republic has increased since 2021.
In addition to supporting infrastructure construction, Iran uses oil revenues to directly purchase Chinese goods.