(Image source from: REUTERS)
US Vice President JD Vance has dismissed claims that the United States is providing $300 billion to Iran as a part of a rebuilding fund linked to their temporary trade agreement. Vance stated that instead, the United States intends to permit other nations to invest in Iran, given that it follows the agreements made in the US-Iran deal. This clarification was made after reports suggested that Iran might gain access to a $300 billion reconstruction fund as part of a peace deal arranged by President Donald Trump's administration. When asked about the fund by Megyn Kelly on "The Megyn Kelly Show," Vance detailed that if Iran complies with the conditions of the deal, the US would lift sanctions on Iran, allowing for investments in the country and promoting financial inflow.
"For instance, consider the United Arab Emirates, which has been one of our strongest allies in the region. Suppose they wish to invest in a nuclear facility in Iran. They cannot do that without us removing some sanctions in the international financial system to enable it," Vance explained. "Now, will the Emiratis invest in Iran, or will America allow the Emiratis to invest in Iran? Unless the Iranians improve their actions? No. So, those who claim, 'Well, you know, you're giving Iran money. ' No, that's incorrect. We're indicating that if Iran alters its behavior, we will permit some other countries to invest in rebuilding their nation and improving the living standards of their people," he added. Previously, news outlet Reuters reported that there is a $300 billion private fund aimed at stimulating investment in Iran, which is mentioned in the US-Iran framework agreement. Based on a source familiar with the deal, the report also mentioned that more than half of that amount has already been promised.
The fund is intended to create economic motivation for both parties to finalize a deal, a source shared with the agency, requesting anonymity because the details have not been publicly disclosed.
They mentioned that the new fund is a private investment tool, rather than a rebuilding or compensation program, and it will not utilize any government funds or grants. Companies from the US, the Gulf Arab nations, Asia, South America, and Africa have agreed to provide financial support. The financial contributions will focus on areas such as energy, logistics, manufacturing, and transportation, according to the source. The concept for this fund, which will be titled the Reconstruction and Development Fund, has come up. An Iranian source stated that the approach includes contributions from regional countries in various forms. These contributions could involve obtaining loans, setting up credit lines, or directly funding the repair of sites that suffered damage during the war, including infrastructures like the Mobarakeh Steel complex, refineries, airports, and other facilities affected by the conflict. Officials from both the US and Iran announced on Sunday that they had reached a framework for bringing an end to their conflict, which began when US and Israeli forces targeted Iran on February 28, and to lift the US blockade of Iran, as well as to reopen the Strait of Hormuz, which is an important shipping route for global oil and gas.
A high-ranking Iranian source informed Reuters that Iran initially requested $400 billion as damage compensation from the US, but Washington refused to grant this amount. Iran is one of the biggest economies in the Middle East and has not received significant foreign direct investment in over forty years, being shut out from global capital markets due to several waves of US and international sanctions. The nation holds the second-largest known natural gas reserves globally and the fourth-largest confirmed oil reserves. Additionally, it has a youthful, educated population exceeding 92 million people, a diverse industrial sector, and considerable untapped resources in areas including petrochemicals, mining, tourism, and agriculture. The investment fund is completely unrelated to ongoing discussions regarding the lifting of US sanctions and the release of Iranian assets that have been frozen abroad, the source noted, clarifying that these are two separate financial systems with distinct aims and timelines.
The fund will not be established or start functioning until a satisfactory final agreement is reached. The memorandum of understanding, once finalized, is meant to guide the process over the following 60 days. "It will only be set up when the final agreement is in place," the source added. "During these 60 days, the fund managers will collaborate with Iranians and investors to outline and plan projects".
