Iranian Foreign Ministry: Iraq releases significant portion of frozen funds

Shafaq News / The Iranian Foreign Ministry announced on Friday that Iraq has released a substantial amount of Iranian funds that were previously frozen. This move comes as part of an agreement reached between Tehran and Washington, mediated by a third party, which involves the release of Iranian prisoners and the unfreezing of funds.

Ali Bagheri Kani, the Political Assistant to the Iranian Foreign Minister, stated to the the semi-official "Mehr" news agency that, in addition to South Korea, a substantial portion of Iran's funds was also held in Iraq.

He elaborated, "Our agreement with the American side to release Iranian funds frozen in South Korea triggered discussions about the release of Iranian funds in Iraq. The process of their release has already commenced."

Kani went on to detail, "Over the last three weeks, we have successfully unlocked nearly seven times the total funds we utilized in Iraq for economic activities last year. We anticipate this momentum to expedite further."

Earlier this month, official Iranian sources disclosed the intricacies of a mediated agreement between Tehran and Washington, involving a prisoner exchange and the release of Iranian funds frozen in South Korea and Iraq.

A source familiar with the accord reported to Iran's official news agency "IRNA", "The terms of this agreement stipulate the liberation of five American prisoners in exchange for the freedom of five Iranian detainees in the United States."

The source provided insight, noting that "in addition, approximately $6 billion of Iranian assets frozen in South Korea are set to be released, along with a substantial share of Iranian funds held in Iraq's TBI Bank." The source further indicated that "the preliminary stages for the unfreezing of Iranian assets in European financial institutions are already underway."

Furthermore, Prime Minister Mohammed Shia Al Sudani disclosed on July 11 that ongoing negotiations with the US aim to settle Iran's outstanding payments for gas imports from Iraq. The sum totals 9.25 billion euros.

Al Sudani revealed Iraq's contribution, stating, "We have already disbursed around 1.842 billion euros within the first seven months of the current government term, per our agreed-upon mechanism."

Moreover , PM Al Sudani informed that a joint delegation from Iraq's central bank (CBI) and the Iraqi Trade Bank embarked on a mission to Oman, working towards a consensus on the transfer of these funds to Oman, in coordination with the US Treasury.