Iran has been using a secretive barter-like system to exchange oil proceeds for credits to purchase Chinese goods, helping Tehran bypass sanctions, according to Reuters.

An estimated $2–2.5 billion passed through a special-purpose vehicle (SPV) over the past year, funding purchases including medicine, vehicles, communication equipment and, at least once, millions of dollars in air-defense equipment.

The system involves Chinese and Iranian-linked entities managing oil proceeds, with around 70% of the funds handled by the China-based entity ChuXin going toward infrastructure projects and the remainder to the SPV for payments to Chinese suppliers.