Here’s a “billion-dollar” question: Who pays $300 billion to help Iran rebuild and reconstruct following mass destruction due to the intense US and Israeli-led bombing campaign?
After dismissed reports about the US “paying Iran 300 million Dollars” as “Fake News,” Reuters claimed on Tuesday that the US-Iran deal to end months-long war includes $300 billion fund, more than half of which is already committed.
A draft of the 14-point agreement, the full text of which was published by CNN, indicated that Tehran, providing it meets commitments related to its nuclear program in further negotiations down the line, may be able to tap into a $300 billion development fund.
Quick answers to key questions
Who is expected to finance the $300 billion fund for Iran’s reconstruction?⌵
The proposed $300 billion fund for Iran’s reconstruction is expected to be financed by private companies looking to invest in the country, rather than coming from US taxpayers or government funds.
What conditions must Iran meet to access the $300 billion reconstruction fund?⌵
Iran must comply with certain requirements related to its nuclear program and demonstrate behavioral changes to access the $300 billion reconstruction fund as outlined in the US-Iran agreement.
What is the purpose of the $300 billion development fund in the US-Iran peace deal?⌵
The $300 billion development fund aims to provide economic incentives for both the US and Iran to finalize a peace deal, enabling reconstruction and economic development in Iran.
When will the $300 billion fund for Iran be created?⌵
The $300 billion fund will be established only after a final and satisfactory peace deal is concluded, with a memorandum of understanding signed to structure the process over the next 60 days.
How does the US-Iran peace deal ensure the $300 billion fund does not involve government money?⌵
The peace deal outlines that the $300 billion fund will be a private investment vehicle, entirely composed of private-sector funds, explicitly stating it will not include government money or grants.
As per the report, the sixth point in the agreement read, “The United States of America undertakes with regional partners to develop a definitive, mutually agreed plan with at least and economic development of the Islamic Republic of Iran.”
“The mechanism for the implementation of this plan will be finalized as part of a final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America,” the purported statement adds.
The agreement between the US and Iran will be signed Friday.
Who will pay the $300 billion fund to rebuild Iran?
The agreement does not detail whether the US alone will finance $300 billion or whether other countries will be party to it.
But several reports and suggested that the proposed $300 billion fund under consideration by the Trump administration for Iran would be financed by private companies looking to invest in the country.
The administration emphasised that this money wouldn’t come from US taxpayers, CNN reported. Instead, it would be money from other Gulf countries that would only be available if Iran complies with a peace deal.
JD Vance recently spilt some tea over reports suggesting a possible reconstruction fund worth as much as $300 billion to Iran as part of the deal.
The vice president made clear that the funds meant for Iran’s reconstruction will only be paid upon Iran meeting certain requirements.
He hinted at conditional and possible investments from the very Gulf states Iran targeted with drones and missiles throughout the war.
Vance told on Monday the $300 billion reconstruction fund was “the sort of thing they [Iran] could have access to, funded by the Gulf Coast Coalition, so long as they honour their end of the obligation.”
“…we absolutely are open to the Gulf Coast countries investing in the reconstruction of Iran, but only if Iran ends their nuclear program, ends their enriched stockpile of material, and is really open to inspections and enforcement regime that gives the American people confidence they’re never going to have a nuclear weapon,” Vance told CBS News.
Vance said late Monday on that “we would invite other countries — not us, but other countries — to invest in” Iran.
“Iranians don’t get a dime unless they behave and change their behaviour” and will “never get a dime of American taxpayer money. Ever. Full stop. Not even close,” Vance said.
He reportedly said the US wouldn’t let the , for example, “invest in Iran, unless the Iranians change their behaviour.”
It’s a private fund, will ‘not include govt money’
Reuters reported on Wednesday that a $300 billion private fund designed to trigger investment into Iran is outlined in the US-Iran framework agreement.
It cited sources saying the fund is designed to give both sides an economic incentive to reach a final deal to end the war.
Reuters also revealed for the first time that more than half of the amount has already been committed and that it will be comprised entirely of private-sector funds.
“The new fund is a private investment vehicle, not a reconstruction or reparations programme and will not include any government money or grants,” the source told Reuters.
They added that companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to commit financing.
“Investments pledged span energy, logistics, manufacturing and transport,” the source said.
How regional countries may contribute to ‘funds’
An Iranian source told Reuters that Tehran had originally sought $400 billion as from the US, but Washington had said it would not provide it.
The idea for the fund, which is to be named the Reconstruction and Development Fund, then emerged.
“The mechanism envisages regional countries contributing in various ways,” the Iranian source said.
These include securing loans, establishing credit lines or directly financing the reconstruction of sites damaged in the war, including facilities such as the Mobarakeh Steel complex, refineries, airports and, more broadly, infrastructure affected by the conflict.
“The investment fund is entirely separate from a parallel negotiating track over the lifting of US sanctions and the release of Iranian sovereign assets frozen abroad,” the source was quoted as saying.
When will this fund be created?
The fund will not be created or become operational until a final and satisfactory deal is concluded. The memorandum of understanding, once signed, is intended to structure the process over the next 60 days.
“It’ll only be created once the final deal is signed,” the source told Reuters. “During these 60 days the fund administrators will work with Iranians and investors to plan and scope projects,” they added.
