Legal Regulation of Investment Operations in the Energy Sector of the Islamic Republic of Iran: Peculiarities of the Relations with the People’s Republic of China

Labin D.K., Bashlykova A.A., Zhdan V.P.

Abstract

The relevance of the topic is driven by the dynamic growth of foreign investments in Iran, particularly from the People’s Republic of China (PRC). Despite sanctions, Iran actively attracts Chinese investments in the energy sector. In 2021, the two countries signed a “Comprehensive Strategic Partnership Agreement” for 25 years, covering energy, military cooperation, and security. Chinese companies such as CNPC and Sinopec are involved in oil and gas field development, including the South Pars project. In 2025, China provided Iran with a loan of 3.897 billion yuan for the construction of solar power plants. Sanctions are circumvented through yuan-denominated transactions and fixed oil prices. However, cooperation faces challenges, including sanctions, infrastructure deficits, and legal risks. Nevertheless, China remains a key partner for Iran, ensuring energy security and stable revenues.

Keywords

Iran, China, investment, energy, strategic partnership, restrictive measures, international law, oil, yuan.

DOI: 10.31249/j.2949-2408.2025.02.02

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