US-Iran peace deal framework: Who will pay $300 billion to help rebuild war-torn Tehran? | Today’s news
Here’s the “billion dollar” question: Who is paying $300 billion to help Iran rebuild and reconstruct after the massive destruction due to the intense US-Israeli-led bombing campaign?
After US President Donald Trump dismissed reports that the US was “paying Iran $300 million” as “fake news”, Reuters said on Tuesday that the US-Iran deal to end the months-long war includes a $300 billion fund, more than half of which has already been pledged.
Read also | US-Iran news LIVE: Trump says Iran likely to abide by MOU
The draft 14-point deal, the full text of which was published by CNN, indicated that Tehran, provided it meets commitments related to its nuclear program in future negotiations, may be able to tap into a $300 billion development fund.
Quick answers to key questions
•5 QUESTIONS
A proposed $300 billion reconstruction fund for Iran is expected to be financed by private companies looking to invest in the country, rather than by American taxpayers or government funds.
Iran must meet certain requirements related to its nuclear program and demonstrate changes in behavior to gain access to the $300 billion reconstruction fund, as outlined in the US-Iran deal.
The $300 billion development fund is intended to provide economic incentives for both the U.S. and Iran to complete a peace deal that will allow for Iran’s reconstruction and economic development.
The $300 billion fund will only be established after a final and satisfactory peace agreement is reached with a signed memorandum of understanding that will structure the process for the next 60 days.
The peace deal outlines that the $300 billion fund will be a private investment vehicle, made up entirely of private sector funds, while specifically stating that it will not include government money or grants.
According to the report, the sixth point of the agreement reads: “The United States commits to develop with regional partners a definitive, mutually agreed upon plan of at least $300 billion for the reconstruction and economic development of the Islamic Republic of Iran.”
“The mechanism for implementing this plan will be finalized as part of the final agreement within 60 days. All required licenses, exemptions and permits needed for the relevant financial transactions will be granted by the United States of America,” the alleged statement added.
The US-Iran deal will be signed on Friday.
Read also | The deal is only the beginning of the end of the US-Iran war
Who will pay for the 300 billion fund to rebuild Iran?
The agreement does not specify whether the US alone will finance the $300 billion or whether other countries will be party to it.
However, several reports and US Vice President JD Vance have indicated that a proposed $300 billion fund the Trump administration is considering for Iran would finance private companies looking to invest in the country.
The administration emphasized that the money did not come from American taxpayers, CNN reported. Instead, it would be money from other Gulf countries that would only be available if Iran abides by the peace deal.
JD Vance recently spilled some tea over reports that suggested Iran could receive a reconstruction fund worth up to $300 billion as part of the deal.
Read also | Trump defends Iran deal at G7, says it averted ‘economic disaster’
The vice president made it clear that the funds intended for the reconstruction of Iran would only be disbursed when Iran met certain requirements.
He hinted at conditional and possible investment from the Gulf states themselves, Iran, which was targeted by drones and missiles during the war.
Vance said CBS News on Monday, the $300 billion reconstruction fund was “the kind of thing that (Iran) could have access to, funded by the Gulf Coast Coast Coalition, if he keeps his end of the bargain.’
“…we are absolutely open to the Gulf Coast countries investing in the reconstruction of Iran, but only if Iran ends its nuclear program, ends its stockpile of enriched material, and is truly open to an inspection and enforcement regime that gives the American people confidence that they will never have a nuclear weapon,” Vance told CBS News.
Vance said late Monday Fox News that “we would invite other countries – not us, but other countries – to invest in” Iraqn.
“The Iranians will not get a dime unless they behave and change their behavior” and “they will never get a dime of American taxpayer money. Never. Period. Not even close,” Vance said.
He reportedly said the U.S. would not allow the United Arab Emirates, for example, to “invest in Iran unless the Iranians change their behavior.”
Read also | Read the 14-point draft memorandum between the US and Iran
It’s a private fund, “doesn’t involve government money”
Reuters reported on Wednesday that the US-Iran Framework Agreement outlines a $300 billion private fund to stimulate investment in Iran.
It cited sources as saying the fund is designed to give both sides economic stimulus reach a final agreement to end the war.
Reuters also revealed for the first time that more than half of the amount has already been allocated and that it will consist entirely of private sector funds.
Read also | US-Iran peace deal: Tehran sets key condition before signing landmark deal
“The the new fund is a private investment vehicleIt is not a reconstruction or reparations program and will not involve any government money or grants,” the source told Reuters.
They delivered that companies based in the USA, the Arab states of the Persian Gulf, Asia, South America and Africa they agreed to finance.
“Investments are committed to cover energy, logistics, manufacturing and transportation,” the source said.
How regional countries can contribute to ‘funds’
An Iranian source told Reuters that Tehran initially demanded $400 billion from the US in compensation for war damages, but Washington said it would not provide it.
That’s when the idea of a fund was born, to be called the Reconstruction and Development Fund.
“The mechanism assumes that regional countries will contribute in different ways,” the Iranian source said.
These include securing loans, establishing lines of credit or directly financing the reconstruction of war-damaged sites, including facilities such as the Mobarakeh Steel complex, refineries, airports and more generally conflict-affected infrastructure.
“The investment fund is completely separate from the parallel negotiations on the lifting of US sanctions and the release of Iranian state assets frozen abroad,” the source said.
When will this fund be created?
The fund will not be created or operate until a final and satisfactory agreement is reached. Once signed, the MoU aims to structure the process for the next 60 days.
“It will be created when the final agreement is signed,” the source told Reuters. “During these 60 days, the fund managers will work with Iranians and investors to plan and scope the projects,” they added.
