Iran May Use US$7 Bil. for Vaccine Purchase
The U.S. government gave a special permission so that US$7 billion in Iranian funds frozen in South Korea can be spent for humanitarian purposes such as vaccine purchase. At the same time, the U.S. government demanded settlement through JPMorgan Chase & Co.
The South Korean government notified Iran of this, and then the Central Bank of Iran demanded an alternative, saying that the funds may be frozen in the United States in the settlement process. According to South Korean government officials, Iran recently seized a South Korean vessel for the alternative that does not involve the United States.
At present, Iran is calling for the South Korean government to guarantee payment in the event of the settlement through the U.S. bank. The South Korean government sent its officials to Iran on Jan. 10 in order to reach a compromise instead of accepting the demand.
The freezing of the funds occurred because of U.S. sanctions on Iran. After the initiation of the financial sanctions in 2010, the Iranian central bank opened Korean currency accounts in Industrial Bank of Korea and Woori Bank so that the accounts can be used in relation to crude oil export proceeds. In 2018, the United States included the central bank in the sanctions and the financial transactions stopped. The Iranian government is currently asserting that the funds and the detainment of the vessel have nothing to do with each other.