US sanctions waiver allows $6 bn Iranian fund transfer in prisoner swap
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Washington: The United States has granted a waiver on sanctions, enabling the transfer of $6 billion in Iranian funds from South Korea to Qatar, a crucial step toward facilitating the previously announced US-Iran prisoner exchange, according to a US document seen by Reuters on Monday.
The main aspects of the US-Iran deal involving the release of five detained US citizens by Iran in exchange for the fund transfer and the release of five Iranians held in the United States, were made public on August 10.
The State Department document, viewed by Reuters, states that Secretary of State Antony Blinken determined that waiving the sanctions was in the national security interests of the United States.
The document sent to US congressional committees, represents the first formal acknowledgement by the US government of its role in releasing the five Iranians detained in the United States as part of the agreement to secure the release of the five US citizens.
“To facilitate their release, the United States has committed to release five Iranian nationals currently detained in the United States and to permit the transfer of approximately $6 billion in Iranian funds held in restricted accounts in the (Republic of Korea) to restricted accounts in Qatar, where the funds will be available only for humanitarian trade,” it said.
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The document said the transfer of funds would only provide “limited benefit to Iran” since the funds can only be used for humanitarian trade.
“Allowing these funds to be transferred from restricted Iranian accounts held in the (Republic of Korea) to accounts in Qatar for humanitarian trade is necessary to facilitate the release of these US citizens,” the document said.
White House spokesperson Adrienne Watson said in a statement late on Monday that Blinken, on September 8, had undertaken “a procedural step in an ongoing process to ensure Iranian funds can move from one restricted account to another and remain restricted to humanitarian trade.”
She said the administration had kept Congress informed from the start of the process.
“As we have said from the outset, what is being pursued here is an arrangement wherein we secure the release of 5 wrongfully held Americans. This remains a sensitive and ongoing process,” she said. “While this is a step in the process, no individuals have been or will be released into US custody this week.”
The transfer of the $6 billion and the prisoner exchange may occur as soon as next week, as indicated by eight sources, including Iranians, who are well-versed in the negotiations.
The sanctions waiver pertains to specific financial institutions primarily governed by the jurisdictions of Germany, Ireland, Qatar, South Korea, and Switzerland. It allows them to conduct transactions with the National Iranian Oil Company, the Central Bank of Iran, and other Iranian financial institutions subject to US sanctions.
