China, Qatar, South Korea... Where Are Iran's Frozen Funds Stuck?

[Financial News, New York = Lee Byung-chul]  The release of Iran's frozen assets has emerged as a key issue in the ongoing ceasefire negotiations between the United States and Iran. Tehran says at least $100 billion in assets are tied up overseas and is demanding a phased unfreezing. Of that amount, as much as $50 billion is estimated to be stuck in China alone.
The Wall Street Journal (WSJ) reported on the 17th local time that the value of Iran's frozen assets abroad is estimated at between at least $60 billion and more than $100 billion. Most of those assets are proceeds from crude oil sales to China, India, South Korea, Japan and other countries.
The funds were effectively frozen when President Donald Trump withdrew from the Joint Comprehensive Plan of Action (JCPOA), the Iran nuclear deal reached under the Barack Obama administration, in 2018 and restored sanctions on Iran. Some assets have remained frozen for decades since the 1979 Islamic Revolution, while many others are proceeds from oil sales in recent years.
The Iranian government has made the phased release of $24 billion in assets its top priority. Economists say that if the frozen funds are unlocked, the impact on Iran's economy would be immediate.
Espandiar Batmanghelidj, CEO of the Bourse & Bazaar Foundation, told WSJ that "even the release of part of the frozen assets could help stabilize Iran's currency and curb inflation," adding that "Iran will continue to push for broader sanctions relief."
By country, China accounts for the largest share. Frozen assets in China are estimated at between $20 billion and $50 billion. China has long been the largest importer of Iranian crude. The United States has used its control over the dollar payment network to restrict payments for Iranian oil by other countries.
About $15 billion is tied up in Iraq. Iraq is a major importer of Iranian electricity and natural gas, but sanctions have limited payments.
About $7 billion is frozen in India. Before sanctions, India was the second-largest importer of Iranian crude, but it stopped related payments after U.S. sanctions were imposed.
In South Korea's case, about $7 billion had been frozen in the past, but much of it was transferred to Qatar in 2023 as part of a prisoner swap agreement between the United States and Iran.
The most sensitive asset in the current talks is the $6 billion deposited in Qatar. The funds were allowed to be used only for humanitarian purposes, but the United States has effectively restricted access since Hamas attacked Israel in October 2023. In the latest U.S.-Iran negotiations, whether access to these funds will be permitted is also being discussed as a key agenda item. In addition, about $8 billion in Iranian assets are believed to remain in Japan, Oman, Luxembourg and the United States.



pride@fnnews.com Lee Byung-chul Reporter