Tehran: China is building infrastructure projects in Iran as part of a barter system that facilitates the exchange of oil for goods.

According to Yemen News Agency, this arrangement allows Tehran to utilize revenues from oil sales to directly purchase Chinese goods, bypassing the traditional international banking system.

The Wall Street Journal highlighted that Iranian oil exports to China are managed through companies such as Sinosure Insurance and Chuxin Finance. This method enables transactions that circumvent the conventional banking channels. A notable portion of the funds derived from these oil sales is directed towards financing major infrastructure projects within Iran, with these projects valued at approximately $8.4 billion last year.

The report further elaborated that China has committed to investing around $25 billion in Iranian infrastructure since the early 2000s. The scale of these projects has seen a marked increase since 2021, indicating the strengthening economic ties between China and Iran.