First Official Case of Virtual Asset Payments for Arms Exports
A Measure to Circumvent Economic Sanctions on Iran
Explains Sanctions Can Be Bypassed via Chatbot
The Iranian government is introducing a system that allows payments in virtual assets when exporting advanced weapon systems, as a way to counter U.S. economic sanctions. This marks the first official case of a government adopting virtual asset payments for arms exports.
According to the Financial Times (FT) on January 1 (local time), the Defense Export Center (Mindex), which is under the Iranian Ministry of Defense and serves as the country's dedicated arms export agency, implemented a policy last year allowing various payment methods for weapons sales, including digital currencies, barter, and the Iranian rial.
Mindex is a state-run agency responsible for Iran's defense exports, with a major client base spanning 35 countries. The Mindex website showcases products such as the 'Emad' ballistic missile, 'Shahed' drones, 'Shahid Soleimani'-class patrol vessels, and short-range air defense systems.
The website also lists a variety of weapons, including small arms, rockets, and anti-ship cruise missiles. Some of these have reportedly been used by armed groups in the Middle East with Iranian support.
It is interpreted that Iran has adopted virtual asset payment methods to expand arms exports as the U.S. and other Western countries have increased the intensity of economic sanctions and pressure on its nuclear program. As sanctions have made contracts more difficult, Iran is utilizing alternative financial channels such as virtual assets.
Mindex is actively promoting arms exports by operating a chatbot on its website. In the 'Q&A' section, it emphasizes that "there are no issues in fulfilling arms export contracts despite U.S. sanctions on Iran. Delivery will be made as quickly as possible," highlighting its ability to circumvent sanctions.
In particular, while specifying that contracts must include conditions related to "the use of weapons during wars with other countries," Mindex also states that negotiations between the parties are possible. It even notes that payment can be made from the purchasing country, and that buyers may inspect the goods directly in Iran with the approval of security authorities.
FT concluded, after reviewing the site's registration data and technical infrastructure, that it is operated by the Iranian government. The domestic cloud service hosting the site has been designated as a sanctions target by the U.S. Treasury Department. The U.S. believes the site is closely linked to Iranian intelligence agencies.
Meanwhile, according to the Stockholm International Peace Research Institute (SIPRI), Iran ranked 18th among major arms exporters worldwide in 2024. The Atlantic Council noted in its 2024 report that Iran could benefit from arms exports due to the Russia-Ukraine war.
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