https://www.farsnews.ir/en/news/14020509000681/Iran-Calls-n-S-Krea-Release-Billins-f-Tehran’s-Frzen-Fnds-Under-Preex
Iran Calls on S. Korea to Release Billions of Tehran’s Frozen Funds Under Pretext of US Sanctions
2023-July-31 15:19
TEHRAN (FNA)- Iranian Foreign Ministry Spokesman Nasser Kana'ani urged South Korea to facilitate Tehran’s access to its blocked assets in the Asian country, amounting to $7 billion worth of debts frozen due to the US sanctions.
Kana'ani told reporters on Monday Tehran is in continuous consultations with Seoul to restore the rights of the Iranian nation, but complained about the limited progress of the talks.
“We expect the Korean government to act prudently and wisely in releasing Iran’s assets in a timely manner,” the spokesperson asserted.
The official also called on Seoul to play its role in order to improve the relations between the two countries and revive the bilateral commercial and economic ties.
He added that Iran will use the legal path along with the negotiation path to restore the funds, pointing out that the administration of President Seyed Ebrahim Rayeesi has recently sent a bill to the parliament on referring the dispute to arbitration to start the legal process of the case.
The Rayeesi administration has recently forwarded to the Iranian Parliament a motion to appoint arbiters in a dispute with Seoul over blocked funds belonging to Tehran in the East Asian country after all diplomatic efforts failed.
The frozen asset issue started in 2018 when former US President Donald Trump withdrew from the 2015 nuclear deal and reinstated economic sanctions against Iran.
Unofficial estimates suggest Iran has more than $7 billion worth of funds in two South Korean banks that it cannot access simply because banks and authorities in the East Asian country refuse to process them because of fears of facing US penalties.
Iranian officials say the South Korean government is obliged to unfreeze the country's frozen funds, stressing that unilateral US sanctions cannot justify Seoul’s inaction in repaying debts to Tehran.
The two sides had previously agreed to use the funds for purchase of humanitarian items by Iran, something that has again been prevented as a result of Korea’s commitment to honor the sanctions.
Tehran has imposed restrictions on imports from South Korea in retaliation for Seoul's illegal compliance with the US sanctions.