US President Joe Biden’s administration cleared the steps for releasing five American citizens held in Iran by issuing a blanket waiver authorising foreign banks to move $6 billion in frozen Iranian funds from South Korea to Qatar without fear of US sanctions.
Additionally, as part of the agreement, the administration agreed to release five Iranian individuals detained in the US.
Overview
Last week, Secretary of State Antony Blinken approved the sanctions exemptions — a month after US and Iranian officials announced a deal in principle. The waiver decision was not disclosed to Congress until Monday, according to the notification acquired by The Associated Press.
The waiver implies that European, Middle Eastern and Asian institutions will not be subject to US sanctions when converting the money frozen in South Korea, and transferring it to Qatar’s central bank, where it will be stored for Iran to use for humanitarian needs.
Blinken stated, “To facilitate their release, the United States has committed to release five Iranian nationals currently held in the United States and to permit the transfer of approximately $6 billion in restricted Iranian funds held in [South Korea] to restricted accounts in Qatar, where the funds will be available only for humanitarian trade.”
The State Department report stated, “Allowing these funds to be transferred from restricted Iranian accounts held in [South Korea] to accounts in Qatar for humanitarian trade is necessary to facilitate the release of these US citizens.”
“However, this transfer will provide limited benefit to Iran, since the funds may only be used for humanitarian trade after they are transferred to the destination accounts,” the report noted.
The waiver allows certain financial institutions in Germany, Ireland, Qatar, South Korea, and Switzerland to conduct transactions with the National Iranian Oil Company, the Central Bank of Iran, and other Iranian financial institutions subject to US sanctions.
In a statement released by the White House late on Monday, spokesperson Adrienne Watson claimed that Blinken had taken “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.”
According to a State Department spokesperson, Washington will oversee when and how the funds are used. “It is longstanding US policy to ensure our sanctions do not prevent food, medicine, and other humanitarian goods and services from flowing to ordinary people, no matter how objectionable their government,” the spokesman said.
Republicans Criticise Deal
Republicans and others have criticised President Biden over the waiver, claiming that it will strengthen the Iranian economy at a time when Iran poses a greater threat to US troops and Mideast allies.
On X, Iowa Senator Chuck Grassley said, “it’s ridiculous for the US to be blackmailed into paying $6B for hostages, which will help indirectly finance the number 1 foreign policy of Iran: terrorism.”
Similarly, Arkansas Senator Tom Cotton accused Biden of “paying ransom to the world’s worst state sponsor of terrorism.”
Sen. Ted Cruz, R-Texas, another Iran hawk, claimed the waivers were evidence that the administration secretly negotiated a greater agreement with Iran that included more than releasing the inmates. “Today’s news confirms there has already been a side deal including a $6 billion ransom and the release of Iranian operatives,” Cruz remarked.
Meanwhile, former US President Donald Trump called Biden “incompetent” and accused him of “destroying America.”
US-Iran Deal in August
In August, Iran’s UN envoy said, “As part of a humanitarian cooperation agreement mediated by a third-party government, Iran and the US have agreed to reciprocally release and pardon five prisoners. The transfer of these prisoners to out of prison marks a significant initial step in the implementation of this agreement.”
Reports suggest that the transfer of the $6 billion was a vital component of the prisoner release agreement, which saw four of the five American inmates transferred from Iranian jails into house arrest last month. The fifth inmate was already under house arrest.
US Agrees to Prisoner Swap Deal with Iran, Will Release Frozen Iranian Funds Worth $6 Billion
Republicans and others have criticised President Biden over the waiver, claiming that it will strengthen the Iranian economy at a time when Iran poses a greater threat to US troops and allies.
September 12, 2023
IMAGE SOURCE: AFPUS President Joe Biden.