Biden Unlocks Fresh Payments to Iran Totaling Billions
The Biden Administration Approves Sanctions Waiver Allowing Iran Access to $10 Billion in Frozen Assets
The Biden administration on Tuesday reapproved a sanctions waiver that will allow Iran to access upward of $10 billion in frozen assets, the State Department confirmed to the Washington Free Beacon.
The sanctions waiver, which was set to expire today after first being authorized for a period of 120 days in July, allows Iraq to pay Iran for multibillion-dollar electricity purchases. This is the first time the Biden administration has renewed the waiver since the Iran-backed terror group Hamas launched an unprecedented attack on Israel that was reported to have been planned with Tehran’s support.
Renewal of the waiver “allows Iraq to use its own funds to render payment for Iranian electricity imports into restricted Iranian accounts in Iraq,” a State Department official told the Free Beacon, speaking only on background. “These restricted funds can only be used for humanitarian and other non-sanctionable transactions.”
While Iran can only use the funds related to the sanctions waiver for the purchase of humanitarian goods, critics of the administration’s policy argue that by freeing up this cash, Iran can allocate other financial resources to its global terrorism operation, which has been in overdrive since Hamas’s October 7 attack on Israel. Analysts place the amount of cash accessible by Iran at upward of $10 billion, as the Free Beacon first reported on Monday.
In deciding to renew the waiver for an additional 120 days, the State Department official said, “Unfortunately, Iraq will not wean itself off of Iranian gas imports overnight.”
The administration maintains that allowing these funds to be accessed by Iran limits its leverage of the Iraqi government, which has grown increasingly close to Tehran’s hardline regime in recent years.
“It is in the U.S. interest that this money leave Iraq and be spent down from Iran’s accounts held overseas,” the State Department official went on. “Money used for non-sanctionable, allowable transactions—like humanitarian trade—is not available to Iran for other purposes, and it deprives Iran of leverage against the Iraqi government.”
Critics, however, see the sanctions waiver as proof that the administration is maintaining Tehran’s financial channels, even after it provided Hamas with the resources necessary to slaughter more than 1,200 Israeli and take hostage many others, including Americans.
“The White House just responded to October 7th with a $10 billion reward,” Richard Goldberg, a senior adviser at the Foundation for Defense of Democracies and sanctions expert who served on the White House National Security Council, told the Free Beacon. “Congress needs to act quickly to cut off Iran’s access to every penny.”
“For that reason,” Goldberg said, “this waiver continues to be necessary, to provide space and time for the government of Iraq to implement [Iraqi prime minister Mohammed Shia Al Sudani’s] energy reform agenda.”
The State Department also confirmed that like July’s version of the waiver, Iraq will be able to transfer Iranian funds to third-party countries, including Oman and several in Europe.
While the Trump administration during its time in office granted a sanctions waiver to Iraq for these electricity payments, it gave the authorization only on the condition that the payments were kept in an escrow account in Baghdad. The Biden administration’s version allows the money to move outside the country, making it easier for Tehran to access the funds, according to Goldberg.
The State Department maintains that Iraq’s ongoing payments to Iran effectively reduce “Iranian leverage over Iraq.”
How does the renewal of the sanctions waiver for Iran’s access to frozen assets affect the Biden administration’s efforts to address Iran’s destabilizing activities in the region?
Asingly dependent on Iranian energy imports. Critics argue that this waiver sends a mixed message to Iran, as it comes right after the country’s support for Hamas in its attack on Israel.
The Biden administration’s approach to Iran has been a subject of criticism and concern since it took office. While the administration has expressed a desire to return to the nuclear deal with Iran, known as the Joint Comprehensive Plan of Action (JCPOA), critics argue that Iran’s destabilizing activities in the region should be taken into account. They point to Iran’s support for terrorist groups like Hamas and its continued pursuit of ballistic missile technology as evidence of its dangerous intentions.
The renewal of the sanctions waiver, allowing Iran access to frozen assets, raises questions about whether the Biden administration is effectively addressing these concerns. Critics argue that by providing Iran with access to substantial funds, the administration is inadvertently supporting Iran’s global terrorism operation. With the additional financial resources, Iran could funnel funds into supporting terrorist activities and further destabilizing the region.
Proponents of the waiver argue that it is necessary to maintain stability in Iraq. With Iraq heavily reliant on Iranian energy imports, cutting off these imports abruptly could have severe consequences for the country’s infrastructure and economy. By allowing Iraq to pay for electricity purchases from Iran, the waiver ensures that essential services are provided to the Iraqi people while also mitigating the risk of Iraq’s dependence on Iranian influence.
However, critics argue that there should be stricter conditions attached to the waiver to prevent Iran from using the funds for nefarious purposes. They suggest that the funds should be closely monitored and restricted only to truly humanitarian transactions. They also call for increased scrutiny and accountability in assessing Iran’s compliance with its obligations regarding terrorism and regional destabilization.
This decision to renew the sanctions waiver comes at a critical time for US-Iran relations. The Biden administration has signaled its willingness to reengage with Iran and revive the JCPOA. However, the recent attack by Hamas, allegedly orchestrated with Iranian support, has raised concerns about the viability of such an agreement. Critics argue that providing Iran with access to frozen funds sends the wrong message and undermines the administration’s credibility in addressing Iran’s destabilizing activities.
The Biden administration has taken a step that is likely to be met with both support and criticism. While proponents argue that the waiver is necessary for stability in Iraq, opponents raise concerns about the unintended consequences of providing Iran with access to substantial funds. The future of US-Iran relations and the fate of the JCPOA remain uncertain, and the decision to renew the sanctions waiver only adds to the complexity of this delicate balancing act.
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