Wednesday, June 7th | 18 Sivan 5783

April 23, 2012 9:45 am

China to Use Gold for Purchase of Iranian Oil, Avoiding U.S. Financial Sanctions

× [contact-form-7 404 "Not Found"]

avatar by Algemeiner Staff

Chinese Premier Wen Jiabao. Photo: wiki commons.

As countries around the world and the banks that operate within them attempt to avoid American financial sanctions aimed at deterring Iran’s nuclear program – which blocks access to doing business in the United States for any entity that buys Iranian oil- Forbes reports this morning that China will look to buy the Iranian product using gold to circumvent Washington’s policy.

China is Iran’s largest trading partner and buys more petroleum from Iran than any other country.  Already, China and India are bartering with Iran, using consumer goods, and in the case of India, the rupee, to pay for Iranian oil imports.

“Iran cannot stabilize the value of its currency with such unorthodox payment methods, and that is why its economy is collapsing,” Kenneth Katzman of the Congressional Research Service said in late March. “Iran is essentially on a junk-for-oil program.”

Iran has already said it will accept gold as payment for its oil in an attempt to prevent countries from stopping their purchases of Iranian petroleum altogether. China has already increased the amount of oil it imports from Saudi Arabia and other Persian Gulf states, according to the Forbes report.

Related coverage

June 7, 2023 4:20 pm

CUNY Professors Fighting to Leave Faculty Union File Brief in Second Appeals Court

Challenging decades of legal precedent, six City University of New York (CUNY) professors are suing to sever all ties to...

As countries like India, Turkey, and China try to avoid American and European Union  sanctions on Iranian oil by looking to other sources, U.S. Treasury Secretary Timothy Geinther spoke over the weekend about global supplies.

“Continued cooperation to ensure adequate supply will signal to global energy markets that there will be sufficient production available to meet demand,” he told members of the International Monetary Fund.

Share this Story: Share On Facebook Share On Twitter

Let your voice be heard!

Join the Algemeiner

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.