A $300 billion private fund to stimulate investment in Iran, entirely separate from the release of Iranian assets frozen abroad and with a different purpose and timeline. This is the mechanism envisaged in the framework agreement between the United States and the Islamic Republic, according to a knowledgeable source who explained to Reuters how it will work. The fund, which will not be established or operational until a definitive and satisfactory agreement is reached, will be made up entirely of private sector resources, half of which have already been committed. Iran had initially requested $400 billion in compensation for war damages from the United States, but Washington refused.
Thus was born the idea for this financial mechanism, which, although it will be called the "Fund for Reconstruction and Development," will not be a reparations system and will not include any government funding or subsidies. All resources will come from the private sector. Companies based in the United States, the Gulf States, Asia, South America, and Africa have already agreed to participate, and investments will focus on energy, logistics, manufacturing, and transportation. Furthermore, over the past four decades, due to US and international sanctions, Iran has failed to attract significant direct investment and has remained excluded from global markets.
In addition to its oil and gas wealth, the country also boasts a young and educated population of over 92 million, a diversified industrial base, and significant untapped potential in sectors ranging from petrochemicals and mining to tourism and agriculture. The memorandum of understanding, which will be signed in the coming days, establishes a 60-day period during which the fund's administrators will work with the Iranian side and the companies to better plan and define the scope of the projects. It is unclear, however, who the administrators will be, nor the names of the investors. The existence of such a mechanism was already known, but it was unclear how much the total amount would be, nor whether the resources involved would be entirely private. US Vice President JD Vance also spoke about the fund in an interview with CBS, stressing that Tehran will only be able to access it if it respects the agreement that provides for the dismantling of its nuclear program, the elimination of stockpiles of enriched material, and acceptance of a rigorous regime of inspections and controls.
(Unioneonline)