US allows $6 billion transfer as part of Iran prisoner swap

As part of the US-Iranian deal to release the Iranian funds, five Americans being held in Iran will be released.

US Secretary of State Antony Blinken and India's Minister of External Affairs Subrahmanyam Jaishankar hold a joint news conference at Jawaharlal Nehru Bhawan (JNB) in New Delhi, India July 28, 2021 (photo credit: REUTERS)
US Secretary of State Antony Blinken and India's Minister of External Affairs Subrahmanyam Jaishankar hold a joint news conference at Jawaharlal Nehru Bhawan (JNB) in New Delhi, India July 28, 2021
(photo credit: REUTERS)

The United States waived sanctions to allow the transfer of $6 billion in Iranian funds from South Korea to Qatar, a step needed to carry out a previously announced US-Iran prisoner swap, according to a US document seen by Reuters on Monday.

The broad outlines of the US-Iran deal under which five US citizens detained by Iran would be allowed to leave in exchange for the transfer of the funds and the release of five Iranians held in the United States were made public on Aug. 10.

According to the State Department document seen by Reuters, Secretary of State Antony Blinken determined that waiving the sanctions was in the national security of the United States.

US acknowledges its release of detained Iranians as part of the deal

The document sent to US congressional committees marks the first time the US government has formally acknowledged it is releasing five Iranians detained in the United States as part of the agreement to secure the freedom of the five US citizens.

"To facilitate their release, the United State 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.

 Iranian Foreign Minister Hossein Amir-Abdollahian (left) and South Korean Foreign Minister Park Jin. (credit: MAJID ASGARIPOUR/WANA (WEST ASIA NEWS AGENCY) VIA REUTERS)
Iranian Foreign Minister Hossein Amir-Abdollahian (left) and South Korean Foreign Minister Park Jin. (credit: MAJID ASGARIPOUR/WANA (WEST ASIA NEWS AGENCY) VIA REUTERS)

The waiver 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 US sanctions, it added.