In a significant development, the US State Department informed Congress on Monday that it plans to waive sanctions and unfreeze $6 billion in Iranian assets held at various banking institutions. The funds, earmarked for “humanitarian aid”, form a key part of a deal that will see the release of five US citizens currently held as prisoners in Iran. Negotiations regarding the prisoner exchange have allegedly been underway since 2017.
Details surrounding the waiving of the sanctions initially remained undisclosed neither by Congress nor the State Department. However, information regarding the decree, signed by Secretary of State Antony Blinken on September 8, has since been unearthed by several news outlets. Crucially, these assets will move from a South Korean bank through Europe, and finally to Qatar, according to Matthew Miller, a State Department spokesperson. He confirmed that the funds’ usage will be strictly monitored by the Treasury Department, primarily meant to secure the Americans’ release.
The funds in question stem from accounts established to facilitate the purchase of Iranian oil, approved by the previous Trump administration. Miller elucidated that the administration had directed these funds towards humanitarian objectives to prevent unregulated expenditure.
The decision, however, has not been devoid of controversy. Senator Chuck Grassley (R-IA) expressed his outrage over the agreement on his official Twitter account, implying the price for hostage release as a form of indirect finance to bolster Iran’s purported primary foreign policy objective, terrorism. He further highlighted the escalating cost of such transactions for the hostages.
Iranian President Ebrahim Raisi also commented on the released funds in an interview with NBC News, asserting that the funds belonged to the Iranian government and would be used for the Iranian people’s needs.
Initial reports about a potential prisoner exchange emerged in August, where prisoners were moved from Evin prison to house arrest in a Tehran hotel. Among the detainees are Siamak Namazi, Emad Sharghi, and Morad Tahbaz. While the release dates are not yet confirmed, CNN reported that it could be expected as early as next week.