Cheating sanctions? China to use Iran's frozen billions to build it a petrochemical plant
China National Aero-Technology Import and Export Corporation (CATIC) has finalized a previously agreement with the Iranian Armed Forces Pension Fund (SATA), according to which €2 billion of Iranian money, which is blocked in China due to international sanctions, will be used to establish a petrochemical plant in the Islamic Republic.
However, all the construction operations will be carried out by Iranian companies, according to the Mehr News Agency.
The petrochemical plant will be established in the southern province of Bushehr.
The first phase of the plant is scheduled to come on stream by the next two years.
In November 2013, Iranian MP Hossein Sobhani-Nia said China had agreed to use $20 billion of blocked Iranian money to fund development projects in Iran to circumvent the international sanctions imposed on the country.
The preliminary agreement was reached after Iranian Majlis Speaker Ali Larijani travelled to Beijing to talk with Chinese leaders about strengthening political, economic, and cultural ties between the two countries.
Iranian government spokesman Mohammad Baqer Nobakht announced shortly after the meeting that $22 billion of Iran’s assets -- mostly revenue from oil exports -- has been blocked in China due to sanctions imposed by the UN Security Council over Iran’s nuclear program.
On June 6, National Iranian Petrochemical Company Managing Director Abbas She’ri-Moqaddam said that Iran plans to boost annual petrochemical output to 180 million tons from around 60 million tons currently.