Iraq releases Iranian US$2.7 billion

Trade Bank of Iraq (TBI), an Iraqi bank, has released Iranian funds. According to a TBI statement the Funds have been released in accordance with a trilateral mechanism between Iran, Iraq and the United States. 

The Iranian assets that were recently released pertain from February to June 2023. This was according to the mechanism agreed upon between the three countries (Iraq, Iran and the United States of America) in force since 2018, said Aqeel al-Showeili, the communications specialist of TBI. 

The chairman of the Iran-Iraq joint chamber of commerce has recently announced that Iraq has released US$2.7 billion worth of Iranian assets.

Yahya Al-e Es’haq said a part of Iran’s frozen assets in Iraq has been allocated for the provision of funds needed by Iranian Hajj pilgrims.

Another part of the assets has been used to pay for the provision of basic commodities, he added.

In addition to the Iranian funds in Iraqi banks, there have been reports about the possible release of Iranian funds by South Korea. Officials from the United States and South Korea are holding talks over unfreezing Iranian funds held in South Korean banks, according to a South Korean daily.

The talks are focused on releasing the US$7 billion Iranian funds that have long been blocked in South Korean banks due to US sanctions on Iran. The funds are oil revenues dating back to the period prior to the re-imposition of US sanctions on Iran in May 2018.

Citing diplomatic and government sources, The Korea Economic Daily said in late May, “Korean and the US government officials are involved in working-level discussions under Washington’s leadership to unfreeze the Iranian funds.”

The newspaper said the funds, if released, would only be used for public and humanitarian purposes such as UN dues and COVID-19 vaccines.

“If all goes to plan, we expect our strained relationship with Iran to improve significantly,” said a Seoul government official.

If talks turn out to be successful, the frozen money will be allowed to be transferred to Iranian bank branches in neighboring Middle Eastern countries, not directly to Iran, to monitor the flow and use of the funds, sources said.

The Korean newspaper also pointed to media speculation over the concessions that Iran is expected to make in exchange for getting its money unfrozen.

It said that media reports alleged that Iran would release US prisoners and limit uranium enrichment levels to 60% in return. These speculations have so far not been confirmed by officials.