Iran reports progress on accessing frozen assets despite sanctions

The sign of the Central Bank of the Islamic Republic of Iran is seen in Tehran, Iran January 25, 2023.
The sign of the Central Bank of the Islamic Republic of Iran is seen in Tehran, Iran January 25, 2023.

Iran has made strides in recovering portions of its blocked financial assets, foreign minister Abbas Araghchi announced, while emphasizing that billions remain inaccessible due to international sanctions.

“Some of it has been released through efforts, while some still remains. This issue is on our agenda, and we continuously pursue it,” Araghchi said on Monday, speaking at the Supreme Council for Foreign Economic Relations.

Iran's frozen assets in international accounts are estimated to be valued between $100 billion and $120 billion. Nearly $2 billion of these assets are held in the United States. According to the Congressional Research Service, in addition to funds in foreign bank accounts, Iran's frozen assets include real estate and other property.

The value of Iran's real estate in the US, along with accumulated rent, is estimated at $50 million. Beyond the assets frozen in the US, portions of Iran's assets are also frozen globally under United Nations sanctions. Despite these obstacles, Araghchi highlighted Iran’s ability to adapt.

“Managing the economy of foreign relations under sanctions and external pressures is a unique skill in which we have become proficient over the past years,” he added.

The Biden administration has eased some restrictions, notably through a September 2023 waiver enabling the transfer of $6 billion from South Korea to Qatar as part of a prisoner exchange. While advocates of such moves argue they facilitate diplomacy, many contend they enable Iran to support proxy groups in the Middle East.

Since President Joe Biden’s term began, relaxed enforcement of oil sanctions has also allowed Iran to generate an estimated $32 billion to $35 billion in additional revenue, according to the Foundation for Defense of Democracies.

Congressional Republicans have voiced concerns that these funds could fuel Iran’s nuclear ambitions or military activities, while the administration defends its policies as part of broader engagement efforts.

In a contrasting move, the US Treasury imposed sanctions in June 2024 on nearly 50 entities linked to Iran’s shadow banking network, which funneled billions to Tehran’s military and proxy forces. These groups, according to US officials, have destabilized the region and supplied drones to Russia for use in Ukraine.

The debate over these financial flows underscores the complexity of balancing economic diplomacy with concerns over regional security.