WASHINGTON: According to a US document viewed by news agency on Monday, the United States lifted sanctions to permit the movement of $6 billion in Iranian funds from South Korea to Qatar, a step required to carry out a previously agreed US-Iran prisoner swap.
The broad outlines of a U.S.-Iran deal that would see five U.S. citizens detained by Iran leave in exchange for the transfer of funds and the release of five Iranians held in the United States were made public on August 10.
According to a State Department document, Secretary of State Antony Blinken decided that the waiver was in the national security interest of the United States.
The document sent to US congressional committees is the first time the US government has formally acknowledged that it is releasing five Iranians held in the United States as part of a deal to secure the freedom of 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 allow the transfer of approximately $6 billion in Iranian funds held in escrow accounts in (the Republic of Korea) to escrow accounts in Qatar . , where funds will be available only for humanitarian trade,” it said.
The document said the transfer of funds would provide only “limited benefit” to Iran, as the funds can only be used for humanitarian trade.
“Allowing the transfer of these funds from restricted Iranian accounts maintained 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.
Blinken on Sept. 8 made “a procedural step in an ongoing process to ensure that Iranian funds can move from one restricted account to another and remain restricted to humanitarian trade,” according to a statement from White House spokeswoman Adrienne Watson late Monday.
Since the start of the procedure, the administration, according to her, has kept Congress updated.
“As we’ve said from the beginning, this is an agreement that will secure the release of 5 wrongfully detained Americans.” This remains a sensitive and ongoing process,” she said. “While this is a step in the process, no individual has been or will be released into US custody this week.”
The $6 billion transfer and prisoner exchange could take place as early as next week, according to eight Iranian and other sources familiar with the negotiations.
The exemption applies to certain financial institutions that fall under the primary jurisdiction of Germany, Ireland, Qatar, South Korea, and Switzerland to engage in transactions with the National Iranian Oil Company, the Central Bank of Iran, and other Iranian financial institutions under U.S. sanctions. he added.
