A memorandum of understanding (MOU) between the United States and Iran includes a plan to establish a $300 billion private reconstruction fund for Iran, with reports indicating that over half of the total fund has already been pledged, including participation from South Korean companies.
According to Reuters on June 16, the MOU outlines the creation of the $300 billion fund, with sources familiar with the agreement stating that more than half of the amount has already been committed. The Financial Times had previously reported that during negotiations, U.S. officials discussed the fund alongside the easing of sanctions against Iran, highlighting interest from companies in Asia, Europe, and the U.S., including South Korea. A source familiar with the negotiations noted, "Many European companies, as well as firms from Asia, including South Korea and Japan, and U.S. companies are showing interest. If sanctions are lifted, this fund could grow significantly."
Reuters further elaborated that U.S. and companies from Asia, the Middle East, South America, and Africa have agreed to fund over $150 billion. Companies from South Korea, Japan, Singapore, Malaysia, and the U.S. are among those that have pledged contributions, although the full list has not been disclosed.
The fund is described as a "private investment vehicle" rather than a conventional reconstruction or compensation program. President Donald Trump emphasized that the U.S. will not provide immediate funding to Iran, calling reports about potential U.S. investments in Iran "ridiculous."
Investment areas include energy, logistics, manufacturing, and transportation. Reuters noted that the fund operates independently of negotiations regarding the lifting of U.S. sanctions or the release of frozen assets abroad.
However, the fund will not be established immediately. Sources indicated that it will only be created after the final agreement is signed, with fund managers collaborating with Iran and investors over the next 60 days to outline the scope and detailed plans for the projects.
This fund initiative also serves as an economic incentive for both the U.S. and Iran to reach a final agreement. Iran had initially demanded $400 billion from the U.S. as compensation for war damages, but after the U.S. rejected direct compensation, the private investment fund approach emerged as an alternative.
Iran to Allow Oil Exports
Separately, Iran is expected to receive some sanctions relief related to oil exports immediately after signing the MOU on June 19. A Trump administration official told Axios that the agreement includes temporary sanctions relief allowing Iran to sell oil while subsequent negotiations continue.
The Wall Street Journal also reported, citing sources, that the U.S. plans to waive existing sanctions to permit the export of Iranian crude oil and petroleum products immediately after the formal signing of the MOU. The waiver will reportedly cover not only oil sales but also related services such as financial transactions, maritime transport, and insurance.
However, the U.S. has made it clear that any economic benefits for Iran are contingent upon performance. Iran must comply with agreements regarding the abandonment of nuclear weapons, the handling of enriched uranium, and ensuring freedom of navigation in the Strait of Hormuz to receive the benefits outlined in the MOU.
U.S. Vice President JD Vance emphasized in a Fox News interview that Iran will not be able to enjoy any benefits from this negotiation if it does not act appropriately.
The official signing ceremony is scheduled for June 19 in Bürgenstock, Nidwalden, Switzerland. Bürgenstock is a mountain resort overlooking Lake Lucerne, which has hosted significant international events, including the 2024 Ukraine Peace Conference.
* This article has been translated by AI.
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