ERBIL, Kurdistan Region — Washington has signed a waiver allowing Tehran to access frozen funds held in Japan and South Korea without violating sanctions.
The waiver allows the "transfer of Iranian funds in restricted accounts to exporters in Japan and the Republic of Korea," according to a notification sent by the State Department to Congress on Tuesday, reported the Washington Free Beacon.
Billions of dollars of Iranian funds are frozen in South Korea and Japan because of US sanctions.
"Allowing these funds to be used to repay exporters in these jurisdictions will make those entities whole with respect to the goods and services they exported to Iran, address a recurring irritant in important bilateral relationships, and decrease Iran's foreign reserves," the waiver stated.
Secretary of State Antony Blinken had previously signed a waiver allowing Iranian funds "to be used to pay back Japanese and Korean companies that exported non-sanctioned items to Iran prior to the expiration of the significant reduction exceptions," a State Department spokesperson told Rudaw on Wednesday.
Significant reduction exceptions were temporary waivers issued by the administration of former President Donald Trump after he withdrew from the nuclear deal in 2018 and re-imposed sanctions on Iran. They allowed Japan, China, India, Turkey, and South Korea to import oil from Iran and expired in 2019.
The spokesperson said the repayment transactions "can sometimes be time-consuming, and the Secretary extended the waivers for another 90 days."
"To be clear: The waiver does not allow for the transfer of any funds to Iran," the spokesperson added. The waiver allows Japanese and Korean companies to be paid for goods and services exported to Iran before Trump's sanction regime.
In January, Iran seized a South Korean ship and held it for four months. Tehran accused the ship of violating environmental protocols but the move is suspected of being used to apply pressure during negotiations to release its assets frozen in South Korea.
These funds were discussed last week in a meeting between Seoul's Finance Minister Hong Nam-Ki and US Treasury Secretary Janet Yellen and the two sides agreed to cooperate on the issue, reported Yonhap News Agency.
The waiver allows the "transfer of Iranian funds in restricted accounts to exporters in Japan and the Republic of Korea," according to a notification sent by the State Department to Congress on Tuesday, reported the Washington Free Beacon.
Billions of dollars of Iranian funds are frozen in South Korea and Japan because of US sanctions.
"Allowing these funds to be used to repay exporters in these jurisdictions will make those entities whole with respect to the goods and services they exported to Iran, address a recurring irritant in important bilateral relationships, and decrease Iran's foreign reserves," the waiver stated.
Secretary of State Antony Blinken had previously signed a waiver allowing Iranian funds "to be used to pay back Japanese and Korean companies that exported non-sanctioned items to Iran prior to the expiration of the significant reduction exceptions," a State Department spokesperson told Rudaw on Wednesday.
Significant reduction exceptions were temporary waivers issued by the administration of former President Donald Trump after he withdrew from the nuclear deal in 2018 and re-imposed sanctions on Iran. They allowed Japan, China, India, Turkey, and South Korea to import oil from Iran and expired in 2019.
The spokesperson said the repayment transactions "can sometimes be time-consuming, and the Secretary extended the waivers for another 90 days."
"To be clear: The waiver does not allow for the transfer of any funds to Iran," the spokesperson added. The waiver allows Japanese and Korean companies to be paid for goods and services exported to Iran before Trump's sanction regime.
In January, Iran seized a South Korean ship and held it for four months. Tehran accused the ship of violating environmental protocols but the move is suspected of being used to apply pressure during negotiations to release its assets frozen in South Korea.
These funds were discussed last week in a meeting between Seoul's Finance Minister Hong Nam-Ki and US Treasury Secretary Janet Yellen and the two sides agreed to cooperate on the issue, reported Yonhap News Agency.
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