A private investment fund worth 300 billion USD to boost capital inflows into Iran has been included in the framework of an agreement between the US and Iran, and more than half of this amount has been committed to by investors, a well-informed source revealed.
According to this source, the fund is designed to create economic momentum for both sides to complete the final agreement. The plan was revealed in the context of Washington and Tehran preparing to sign an agreement later this week.
On June 14, US and Iranian officials confirmed that the two sides had reached a framework to end the conflict that broke out on February 28, while ending the US blockade of Iran and reopening the Strait of Hormuz.
Sources said that the new fund is a private investment tool, not a reconstruction or war reparations program, and will not use state budget or non-refundable aid.
Businesses from the US, Gulf Arab countries, Asia, South America and Africa have agreed to commit financial resources to the fund. The investments are committed to spanning the fields of energy, logistics, industrial production and transportation.
A senior Iranian source said that Tehran initially requested Washington to compensate 400 billion USD for conflict damage, but Washington refused to meet this request. Later, the idea of establishing a fund called the Reconstruction and Development Fund was put forward.
Iranian sources noted that this mechanism is expected to mobilize the participation of countries in the region in various forms, including guaranteeing loans, opening credit limits or directly financing the restoration of damaged facilities in conflict.
Items that can be supported include the Mobarakeh steel complex, oil refineries, airports and many other infrastructure works affected by fighting.
Sources said that this investment fund is completely separate from a parallel negotiation channel on lifting US sanctions as well as freezing Iranian assets that are frozen abroad. These two financial mechanisms have separate goals and roadmaps.
The fund will only be established and put into operation when a US-Iran peace agreement is completed. The memorandum of understanding expected to be signed will create a framework for the implementation process within the next 60 days.
The fund will only be established after the final agreement is signed. In these 60 days, fund management units will work with Iran and investors to build and determine the scope of projects" - the source noted.
A White House spokesman quoted the interview of US Vice President JD Vance with CBS on June 15, in which Mr. Vance said that Iran could access a $300 billion reconstruction fund backed by Gulf countries if it complies with agreements with Washington, including dismantling its nuclear program, eliminating enrichment material stockpiles and accepting strict inspection and supervision mechanisms.
The 60-day memorandum is only an initial framework and not a final agreement. During this time, US and Iranian negotiators are expected to continue discussions in many areas, including nuclear issues, economic sanctions and regional security.
