Oct 19, 2013 Comments Off Chuck Biscuits
Excerpted from AP: The Obama administration is weighing whether to offer Iran the chance to recoup billions of dollars in frozen overseas assets if it takes steps to scale back its nuclear program, U.S. officials and congressional aides said Friday. The proposal would face a skeptical Congress determined to make the end of Tehran’s uranium enrichment activity the condition for any sanctions relief.
The brainstorming comes after two days of nuclear negotiations between Iran and world powers ended this week in Geneva. The talks — the first since Iranian President Hassan Rouhani took office — ended on an upbeat note although it fell short of specific and concrete commitments by Iran to stop enriching uranium or ship out its stockpiles of higher-enriched uranium.
The proposal is one of several under consideration to spur negotiations to ensure Tehran can’t produce atomic weapons. Enriching uranium can produce material for peaceful energy purposes or nuclear arms.
Under the plan being weighed, Iran would be able to access money from oil sales overseas that it currently can only barter with because of U.S. and international sanctions. Senate aides put the total between $50 billion and $75 billion. It’s not clear what Iran would have to do in return to prompt the Obama administration to allow banks to release the money.
The premise behind providing Iran with cold cash is that opening and shutting such a valve would be far easier than beginning to take apart years of complicated, international financial and oil sanctions that would also be difficult to put back together if Iran failed to live up to the bargain. Finding a formula for sanctions relief is important if President Barack Obama is going to be able to offer the Iranians good reason to be open about their nuclear program before they reach the point of nuclear weapons capability. A nuclear-armed Iran could prompt a U.S. or Israeli military intervention.
“Iran will have to agree to meaningful, transparent and verifiable actions before we can seriously consider taking steps to ease sanctions,” White House spokeswoman Bernadette Meehan said. Meehan and State Department spokeswoman Jen Psaki declined to comment on specific types of sanctions relief, calling such questions “premature and speculative.”
Officials who confirmed the cash reserves approach weren’t authorized to speak publicly on the matter and demanded anonymity.
Congress is already weighing in. Republican Sen. Mark Kirk of Illinois, a key proponent of Iran sanctions, plans to introduce an amendment to a new package of international restrictions on commerce with Iran that would seek to provide the administration with more sticks and carrots for talks through Iran’s cash reserves, a Senate aide said.
Kirk’s plan would freeze any remaining assets overseas that Iran can still access by threatening to cut off from the U.S. market any foreign banks that continue doing business with Iran. At the same time, it would also give Obama the flexibility to allow Iran to access some of that $50 billion to $75 billion it can’t use today, said the Senate aide, who wasn’t authorized to speak publicly on the pending legislation and demanded anonymity.