Washington allows transfer of six billion dollars as part of prisoner exchange with Iran

(Patria) - The United States has waived sanctions to allow the transfer of six billion dollars in Iranian funds from South Korea to Qatar, a necessary step for the execution of the previously announced prisoner exchange between the US and Iran, according to a US document seen by Reuters on Monday.

The broad outlines of the US-Iranian agreement, under which five American citizens detained by Iran will be allowed to leave in exchange for the transfer of funds and the release of five Iranians held in the United States, were announced on August 10.

According to a State Department document seen by Reuters, Secretary of State Antony Blinken determined that the waiver of sanctions is in the national security interest of the United States.

The document, sent to committees of the US Congress, marks the first time the US government has officially acknowledged releasing five Iranians detained in the United States as part of an agreement to secure the freedom of five American citizens.

"To facilitate their release, the United States has committed to releasing five Iranian nationals currently detained in the United States and allowing the transfer of approximately six billion dollars in Iranian funds held in restricted accounts in (Republic of Korea) to restricted accounts in Qatar, where the funds will be available only for humanitarian trade," it states.

The document states that the transfer of funds would provide only "limited benefit to Iran" as the funds can only be used for humanitarian trade.

"Allowing these funds to be transferred from restricted Iranian accounts held in (Republic of Korea) to accounts in Qatar for humanitarian trade is necessary to facilitate the release of these US citizens," the document states.

The transfer of six billion dollars and the prisoner exchange could happen as early as next week, according to eight Iranian and other sources familiar with the negotiations.

The waiver applies to certain financial institutions 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.