China plans postwar aid for Iran, with eye on energy supply
China is preparing a wide-ranging aid package to rebuild Iran's postwar infrastructure and energy sector. Beijing is expected to deliver a large portion of the roughly $25 billion in support in exchange for long-term energy supply guarantees to Chinese oil companies.
According to five Chinese and Iranian officials interviewed by Nikkei Asia, Beijing's planned aid centres on rebuilding Tehran's damaged power grid, oil-refinery facilities in Tabriz and infrastructure at the Hormuz port. As a first phase, the China Development Bank has agreed to extend $8 billion in conditional loans.
The energy component stands out: CNPC and Sinopec want to lock in 15-year contracts with a 12% discount on 1.2 million barrels per day of Iranian crude. Chinese Foreign Ministry spokesperson Mao Ning told a briefing, « this cooperation is in line with international trade rules and the principle of mutual benefit. »
US State Department spokesperson Tommy Pigott warned that Beijing « may be testing the boundaries of the sanctions regime. » EU foreign policy chief Kaja Kallas said the package could affect the resumption of Iran's negotiations with the EU. Beijing and Tehran plan to sign the formal agreement on 10 July.
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