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By Mandy Taheri
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The signed agreement between Iran and the United States could unlock billions of dollars in frozen Iranian assets around the world, with officials on both sides offering differing accounts of the amount and terms.
Here's what we know about where the frozen funds are currently held.
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Where Are Iran’s Frozen Assets
Frozen assets are funds or other financial holdings that are legally blocked from being accessed or transferred, often because of sanctions. In Iran's case, the assets largely consist of oil revenues and foreign currency reserves held in foreign banks.
Iran has been subject to U.S. sanctions and trade restrictions since the 1979 Iranian Revolution, with additional measures imposed over the years in response to concerns about its nuclear program, human rights record and support for militant groups across the Middle East.
Iran's economy has been battered by years of sanctions, high inflation and currency depreciation, with the recent war adding to the country's economic challenges. The release of the assets could provide Iran with billions of dollars in additional resources at a time of significant economic strain.
The map and much of the reporting on Iran's frozen foreign assets are based on estimates that vary significantly, with Iranian officials saying the total could be as high as $100 billion, with other estimates under $50 billion.
China is widely believed to hold the largest amount of Iran's frozen foreign assets, with estimates ranging from $20 billion to $50 billion, according to The Wall Street Journal. China has long been the leading purchaser of Iranian oil. Prior to the Obama-era nuclear deal, JCPOA, India was considered the second-largest oil buyer from Iran.
Other notable assets are held in Iraq, estimated at around $15 billion, which buys electricity and natural gas from Iran. Japan, Luxembourg, the U.S., South Korea, Qatar, and Oman also have frozen Iranian assets.
What the MOU Says About Frozen Assets?
The 14-point memorandum of understanding (MOU) between Iran and the United States includes a provision outlining the potential release and use of frozen Iranian assets held abroad. The parties signed the agreement on Friday, June 17.
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Paragraph 11 of the signed Memorandum of Understanding (MOU) between Iran and the U.S. states: “The United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon the implementation of this M.O.U. The United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during the negotiations. Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States of America undertakes to issue all necessary licenses and authorizations accordingly.”
What Has Iran and The U.S. Said About the Frozen Funds?
President Donald Trump said on Monday that Iran should use their unfrozen funds to buy American food products, saying, “All that money's coming back in the form of purchases of food which they desperately need. They have 91 million people; they can't feed them. So, the money that we lift is going to go to our farmers.”
However, on Tuesday, Iranian officials pushed back on that characterization. Speaking to reporters in Geneva, Ali Bahreini, Iran's ambassador to the United Nations, said, "Iran is the only country to decide what to do with its assets, which are going to be defrozen, and so I reject any claim about that if there would be any role for any other country to have an influence on those decisions or on those processes.”
Separately, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the agreement between Tehran and Washington includes the release of $12 billion in frozen Iranian assets. According to reports cited by The National, Ghalibaf said the sum would be released in two separate tranches of $6 billion each.
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