Washington announced it had signed off on transferring $6 billion in frozen Iranian funds from South Korea, facilitating the release of five US citizens in Tehran while emphasizing strict limitations on the fund’s use.

The United States confirmed Monday it had signed off on the transfer of $6 billion in frozen Iranian funds from South Korea, paving the way for five US citizens to leave Tehran.

The archenemies announced last month, after protracted negotiations, a deal in which the US citizens were freed from prison and put under house arrest, with the expectation they will fly out of Iran once the funds are moved to an account in Qatar.

Secretary of State Antony Blinken notified Congress that he had gone ahead on a key part of the agreement, signing a waiver that will shield banks involved in the transfer from US sanctions.

President Joe Biden’s administration has insisted that Iran will only be allowed to use the money to buy food, medicine, and other humanitarian goods, a point contested by Iran’s clerical state, a nemesis of Washington since the 1979 Islamic Revolution overthrew the pro-Western shah.

“We have not lifted any of our sanctions on Iran, and Iran is not receiving any sanctions relief,” the State Department spokesperson said on customary condition of anonymity.

“We continue to counter the Iranian regime’s human rights abuses, destabilizing actions abroad, its support for terrorism and its support for Russia’s war against Ukraine.”

In Tehran, foreign ministry spokesman Nasser Kanani insisted that the money will allow the Islamic republic to “purchase all non-sanctioned goods” which are not limited to food and medicine.

Kanani voiced optimism that the prisoner exchange “will take place soon.”

The five Americans had been held for as long as nearly eight years. All are of Iranian descent, with Tehran not recognizing dual nationality.

Sources earlier said to expect the five Americans to leave in mid-September.
Biden’s Republican rivals have gone on the attack, describing the president as agreeing to a “ransom payment” to a state classified by Washington as a sponsor of terrorism.

Miroslava Salazar, with AFP