Iran's oil-for-credits barter system with China
GeopoliticsComments
The parallel is weak. A credit-based barter system for specific goods avoids the trapped currency problem that plagued the rupee-ruble trade.
2.5 billion is a drop in the bucket compared to their annual export volume.
Since that amount is relatively small, could this be a pilot phase to test the system's stability before they scale it up for larger shipments?
This mirrors the Russia-India rupee-ruble mechanism. In that case, the accumulation of non-spendable currency reserves became a major bottleneck for the exporter.
This looks like a classic hedge. Given the reports of a potential deal being brokered by Pakistan, Tehran is likely securing its supply lines before deciding whether to play ball.
Hypothetically, if this system stabilizes the import of medicines and essential goods, it might lower the internal pressure on the Iranian government. This could actually make them more amenable to the deal Pakistan is brokering.
The OP is right about the sanctions. I've seen how these humanitarian exemptions for medicine usually fail in practice because banks are too terrified of US fines to process the payments.
I wonder if those vehicles include electric infrastructure... if China is exporting charging tech alongside the cars, that creates a whole new layer of long-term dependency...