Iran International
An expert from an institute affiliated with Iran's Ministry of Oil has raised concerns about the country's oil dealings with China, revealing that these transactions bring minimal financial returns for Iran.
"Today, we are selling oil under deplorable conditions—at low prices with steep discounts—and in return, we are importing substandard Chinese goods at best," Morteza Behrouzifar from the Institute of International Energy Studies remarked in a candid discussion with a local website about the ongoing challenges facing Iran’s oil industry.
In an interview with ILNA, Behrouzifar further highlighted that Iran's current situation leaves it heavily reliant on China, which poses significant risks to the nation's economic sovereignty. This starkly contrasts with official claims that Iran sells crude oil to 17 nations, including some in Europe.
The expert also criticized the broader strategic missteps within the oil sector, describing them as rooted in "showmanship" rather than substantive achievements.
Over the past three years, he said there have been claims of massive foreign economic contracts—exceeding $100 billion—but these were often mere memorandums of understanding presented as binding agreements.
He argued that this has led to the depletion of national resources, including the National Development Fund (NDF), without any significant return on investment. "We did not achieve any results proportionate to the money invested," he noted, underscoring the inefficacy of these deals.
NDF, Iran's national wealth fund, is intended to reserve around 30% of oil profits for future generations. However, due to international sanctions and an inefficient economy that have perpetually strained the government's budget, the majority of the over $100 billion in savings has already been depleted.
The most recent instance that could be inferred from his remarks is the May agreement, in which Tehran Municipality discreetly finalized a two-billion-euro contract with a Chinese firm for the import of transport and traffic surveillance equipment, including electric buses. This clandestine deal sparked significant backlash, even among members of the city council.
"The president of the 14th government [Masoud Pezeshkian] must understand that if these conditions continue, the oil industry will not be able to survive," Behrouzifar warned.
Despite US sanctions reinstated in 2018 over Iran's nuclear program, China has continued to purchase Iranian oil, but under conditions that are far from favorable to Iran.
Last July, The Wall Street Journal reported that Iran's crude oil exports had surged to their highest levels in five years, albeit at steep discounts of up to $30 per barrel. The report corroborated estimates indicating that Iran exported 1.6 million barrels per day in May and June, a significant increase from the 250,000 barrels per day recorded in 2019 and 2020, shortly after the US reimposed comprehensive sanctions.
In addition to discounts, China apparently does not pay in cash for most of the oil, because Iran is also under US banking sanctions. Although on paper Iran annual oil revenues reach $35 billion, it is not clear how much hard currency Tehran receives.
China imports Iranian oil through tankers, which avoid detection by operating without transponders. Known as "ghost ships" or "dark fleets," these vessels employ sophisticated methods to conceal their ownership and movements, enabling them to circumvent international sanctions. They partake in high-risk operations such as ship-to-ship transfers in open waters and deactivate Automatic Identification System (AIS) transponders to mask their identities and evade detection.
Once they reach Chinese shores, the oil is rebranded as Malaysian or Middle Eastern crude. It is primarily bought by "teapots," small independent refineries that have absorbed the bulk of Iran's oil exports since larger state-owned refineries withdrew due to sanction fears.
As the Atlantic Council reports, China’s payments to Iran are made in renminbi through smaller, US-sanctioned financial institutions like the Bank of Kunlun. This minimizes exposure for China’s larger banks but leaves Iran with limited options for using the currency.
In an interview with Iran International, Neda Mihandoust revealed that intelligence agents pressured her brother Navid to contact Alinejad under the pretense of making a new documentary about women. When Navid refused, the state retaliated by re-arresting him in August 2023, placing him in Evin Prison to serve a three-year sentence.
First arrested in December 2019, Navid was taken to Evin Prison’s notorious ward 209, run by the Ministry of Intelligence, on charges related to a 2009 documentary about Alinejad. After two months of interrogation, he was released on bail in February 2020. The presiding Judge of Branch 28 of Tehran Revolutionary Court, Mohammad Reza Amouzad, notorious for issuing long and harsh sentences, and sanctioned by the UK and Canada for being involved in serious human rights violations, sentenced him to three years in prison.
Neda told Iran International that after Navid was released on bail, intelligence agents repeatedly pressured him to cooperate by reaching out to Alinejad.
“The interrogator told my brother that if he complied, they could halt the execution of Navid's sentence…every few weeks, he kept contacting Navid and asking him for an answer…The interrogator was asking him to call Masih,” Neda said.
This pressure coincided with a broader plot by Iranian intelligence to kidnap Alinejad and lure her back to Iran, where she could face the same fate as Iranian dissident journalist Ruhollah Zam, who was executed in Iran after being abducted.
“The incident coincided exactly with the disclosure of the Islamic Republic's plan to kidnap Masih Alinejad, which was stopped by the FBI,” Neda added.
US Justice Department announced in July 2021 that the FBI had foiled an attempt by Iranian intelligence agents to abduct Alinejad, luring her back to Iran in a plot that had been in the works since at least June 2020. Four Iranian nationals were indicted for their involvement in the plot.
Alinejad, speaking to Iran International, expressed deep concern over these developments, stating, "I am gravely concerned to learn that Iran’s security apparatus has attempted to coerce an innocent filmmaker into leveraging his connection with me in an effort to cause harm. This disturbing incident highlights the ongoing misuse of Iran’s judiciary by security forces to fabricate charges against innocent citizens, compelling them to collaborate with the regime or serve as instruments in their nefarious objectives."
She added, "These actions provide further evidence that Iran’s judiciary functions not as a genuine system of justice, but as a mere tool in the hands of the security apparatus."
Navid’s refusal to cooperate with the authorities led to multiple warnings and pressure tactics, including the freezing of his bank accounts, and his eventual re-arrest in August 2023. "They warned him that if he didn’t turn himself in, they would take action against his bail. Eventually, after the third warning, they closed his bank accounts to put pressure on him," Neda said.
While on bail, despite a ban on making films and the pressures from Iran’s intelligence agents, Navid turned his experiences into a source of inspiration, directing the underground film Café. The film, starring Setareh Maleki is currently being screened at the Incríveis Film Festival in São Paulo.
Speaking to Iran International, Maleki, who herself was forced to flee Iran following her appearance without the mandated hijab in another underground film commented on Navid’s courage despite state pressures: "Navid truly stood by his principles and refused to cooperate with them to avoid prison. While awaiting his sentence, he made this film underground and without a permit."
The film tells the story of Sohrab, a once-prominent director who, after being banned from filmmaking, spends his days in a cafe.
Maleki also noted that the character Sohrab is deeply reflective of Navid himself. "When I read the script, I asked Navid if the character Sohrab was him. He laughed and said, ‘No, it’s not me.’ But after his sentence came and I learned more of his story, I realized it was him. He created the character of Sohrab so that even behind bars, he could still breathe on the cinema screen."
Although there has been no update on Navid’s case, even behind bars, he continues to resist.
“On August 20, 2024, it will be exactly one year since Navid was imprisoned in Evin. Initially held in Ward 4, he was placed in solitary confinement for three days after sharing the story of a fellow prisoner who died due to delayed medical attention. During that time, he went on a hunger strike to protest his confinement. Afterward, he was moved to Ward 8,” Neda explained.
Asked if Neda herself has faced any threats by the Iranian authorities while advocating for Navid's release outside of Iran, Neda said:
"Navid's interrogator told him that we have a charge against your sister, and when my brother asked him the reason, he said we can explain it to her when she comes to Iran."
As Navid serves his sentence, his story highlights the ongoing struggle for artistic freedom and the Islamic Republic’s pattern of transnational repression, using intimidation and punishment to silence critics both within Iran and beyond its borders.