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The Obama administration on Wednesday paid $490 million in cash assets to Iran and will have released a total of $11.9 billion to the Islamic Republic by the time nuclear talks are scheduled to end in June, according to figures provided by the State Department.
Today’s $490 million release, the third such payment of this amount since Dec. 10, was agreed to by the Obama administration under the parameters of another extension in negotiations over Tehran’s contested nuclear program that was inked in November.
Iran will receive a total of $4.9 billion in unfrozen cash assets via 10 separate payments by the United States through June 22, when talks with Iran are scheduled to end with a final agreement aimed at curbing the country’s nuclear work, according to a State Department official.
Iran received $4.2 billion in similar payments under the 2013 interim agreement with the United States and was then given another $2.8 billion by the Obama administration last year in a bid to keep Iran committed to the talks through November, when negotiators parted ways without reaching an agreement.
Iran will have received a total of $11.9 billion in cash assets by the end of June if current releases continue on pace as scheduled.
The release of this money has drawn outrage from some Republican lawmakers who filed legislation last year to prevent the release of cash due to a lack of restrictions on how Iran can spend the money.
These cash payments by the United States have been made with no strings attached, prompting concerns that Iran could use the funds to finance its worldwide terror operations, which include the financial backing of Hamas, Hezbollah, and other rogue entities.
Senators—including Mark Kirk (R., Ill.), Kelly Ayotte (R., N.H.), and John Cornyn (R., Texas)—sought last year to put a hold on the cash infusions until the White House could certify that Iran was not using the money to support terrorism.
Kirk, who is preparing to offer legislation that would tighten sanctions on Iran, said that the ongoing payments could help Iran fuel its terror empire well into the near future.
“Between November 2014 and July 2015, the interim deal’s direct forms of sanctions relief will allow Iran access to roughly $4.9 billion in frozen money,” Kirk told the Washington Free Beacon “That’s equal to what it’d cost Iran to fund Hezbollah for as much as 50 years.”
The Pentagon estimates Iran has spent $100 to $200 million per year funding Hezbollah.
Entities likely to receive support from Iran include the Palestinian Islamic Jihad (PIJ) and the regime of President Bashar al-Assad of Syria, the legislation suggests.
When final negotiations between the United States and Iran failed in November, negotiators decided once more to extend the talks through June of this year. The terms of that extension granted Iran the 10 payments of $490 million, a State Department official said.
“With respect to sanctions relief, the United States will enable the repatriation of $4.9 billion of Iranian revenue held abroad during the extension,” the official said.
The first two payments were made in December, followed by Wednesday’s payment.
The next release is scheduled for Feb. 11, with two more scheduled for March. The rest of the frozen cash assets will be given back to Iran on April 15, May 6, May 27, and June 22, respectively.
Mark Dubowitz, the executive director of the Foundation for Defense of Democracies (FDD), said the ongoing release of these assets has provided Iran with a critical “financial lifeline.”
“The Obama administration provided Iran with a financial lifeline through both direct sanctions relief and the de-escalation of sanctions pressure that helped the regime stabilize its economy after a severe sanctions-induced economic crisis in 2012 and 2013,” Dubowitz said. “It is not a surprise that this has increased Iranian negotiating leverage and hardened the supreme leader’s nuclear intransigence.”
In addition to decrying the lack of restrictions in place to ensure that Iran does not use the released funds to sponsor terrorism, critics of the sanctions relief protest that Iran is benefitting while the United States receives little in return.
Iran has continued to enrich uranium under the interim deal, adding what one critic, Rep. Brad Sherman (D., Calif.) referred to as “about one bomb’s worth” to its reserves.
Iran also has continued to make advances on the plutonium track, which provides it with a second path to a nuclear bomb.
President Hassan Rouhani of Iran announced last week that the country has begun constructing two new light water nuclear reactors, a move that the U.S. State Department said is permissible under the terms of the interim agreement.