Iranian Deputy Foreign Minister Kazem Gharibabadi announced on Wednesday that Tehran will utilize a portion of its frozen assets held in Qatar to purchase goods essential for the country, following discussions in Doha. The announcement comes under the memorandum of understanding that ended the war between Iran and the United States, wherein Washington agreed to make available Iran's frozen or restricted assets as part of the agreement's implementation.
Mechanism for Fund Release Still Unclear
The precise mechanism for releasing and using the funds remains unclear, as does the timeline for when it will take effect. Gharibabadi stated, according to the IRNA state news agency, that during meetings with Qatari officials, including the Central Bank, issues related to the expenditure of part of the initial six billion dollars were reviewed. He added, "It was agreed that, based on the needs communicated by our country, the required goods would be purchased and made available to Iran."
Background of the Frozen Assets
The $6 billion mentioned by Gharibabadi refers to a portion of Iranian oil revenues that were transferred from South Korea to restricted accounts in Qatar starting in 2023. This sum is part of a larger $24 billion in frozen assets that Iran claims are held abroad. Last month, Iranian foreign ministry spokesman Esmaeil Baqaei asserted that Tehran alone would decide how to use the released assets, "in whatever way is most beneficial and favorable to the country." He also stated that the funds would "be available for Iran to freely use as it sees fit to supply the goods that the country needs."
US and Qatar Oversight Disputed
US Vice President JD Vance had indicated in June that the assets had not yet been unfrozen under the agreement, but if they were, the US and Qatar "have approval over that process." He also suggested the money would be used to purchase US goods, including agricultural products such as soybeans. However, Iran's chief negotiator Mohammad Bagher Ghalibaf rejected that characterization on Tuesday, claiming that $12 billion of the country's $24 billion in frozen assets "are to be given" to Iran's Central Bank "so that it can purchase any goods it needs, at any price and in any currency worldwide."
Iran's Stance on Fund Usage
Gharibabadi's remarks reinforce Iran's position that it will determine how the funds are spent, based on national needs. The agreement with Qatar is seen as a step toward easing economic pressures on Iran, which has faced severe sanctions. The purchase of essential goods, including food, medicine, and industrial supplies, is a priority for Tehran.
