US OKs partial release of Iranian funds frozen in S. Korea
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On Feb. 24, Abdolnaser Hemmati, governor of the Central Bank of Iran, announced that "a first tranche of US$1 billion will be returned from the U$7 billion currently frozen in South Korea."
Commenting on this, a MOFA official said, "We cannot specify [the amount of US$1 billion] because we still need to discuss things with the US."
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The US has reportedly agreed to allow a portion of Iranian funds currently frozen in South Korea due to sanctions to be transferred to Iran via Switzerland.
But the actual transfer appears likely to take some time, as discussions will need to take place with the US, Switzerland and other parties on the specifics, including the amount to be transferred, the banks and the timeline.
Meeting with reporters on Feb. 25, a South Korean Ministry of Foreign Affairs (MOFA) official was asked whether the US had agreed to a portion of Iran’s frozen funds being transferred via the Swiss Humanitarian Trade Agreement (SHTA) channel.
“You could say that the approach has been OK’d, although we still need to have discussions on how the funds will be transferred in general,” the official said.
According to this response, the US has sent a favorable signal on at least part of the approach agreed upon by South Korea and Iran on Feb. 22.
But the same official also said the US “has OK’d some of the items, while others are still under discussion,” suggesting that the situation with the Joint Comprehensive Plan of Action (JCPOA) — the Iran nuclear deal — is having an influence on discussions about transferring Iran’s frozen funds.
The SHTA channel was set up early last year to allow for the supply of humanitarian items to Iran even amid sanctions. Under this approach, humanitarian items such as medicine, healthcare equipment and food are purchased and exported to Iran through Swiss companies approved by the US government. Swiss banks provide guarantees for the funds used for the items.
Once concrete discussions have been completed with the US and other members of the international community, it will be possible to transfer a portion of the funds frozen in South Korea to an Iranian account in Switzerland, which will allow Iran to purchase the humanitarian goods it needs.
On Feb. 24, Abdolnaser Hemmati, governor of the Central Bank of Iran, announced that “a first tranche of US$1 billion will be returned from the U$7 billion currently frozen in South Korea.”
Commenting on this, a MOFA official said, “We cannot specify [the amount of US$1 billion] because we still need to discuss things with the US.”
“Ultimately, we will need special approval from the US and discussions with Switzerland,” the official explained.
By Kim Ji-eun, staff reporter
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