Iran US Economic Negotiations Overview

In the name of God, the Most Gracious, the Most Merciful

During the negotiations we had with the US government,

and the governments of Qatar and Pakistan accompanied us and acted as mediators,

we actually made two important decisions in Switzerland regarding the economic section of this agreement.

One was related to the release of our blocked assets.

Well, as you know, the agreement states that these will be gradually released during the negotiations,

and we agreed that 12 billion would be first, with the rest released during the negotiations.

We were aware that in the year 1402, an agreement was signed between Iran and the US.

We based it on that same 1402 agreement they had with the US, the agreement they had,

and based on that, they are used for essential goods and medicine.

Well, some might ask why you did this and why we didn't use it for something else.

It makes no difference to us; we spend 10 to 12 billion dollars a year...

...now on essential goods, even if we calculate conservatively, on essential goods.

We have to spend something close to 15 billion dollars a year.

Well, on the other hand, we will do this: the resources that we wanted to...

allocate for basic goods, we won't allocate them anymore.

We will use them for other items or save them.

So these resources... That's why we considered this a good agreement.

Some said, for their domestic consumption, the Americans said...

"We want to buy all of it from American farmers."

No, there is absolutely no such requirement in the signed memoranda.

The two memoranda that were signed during the negotiations...

there is absolutely no talk of mandatory purchase from America.

But we don't see any obstacle if indeed the price and quality...

of basic goods in America, like corn and wheat...

or whatever we want to buy, if its quality is good...

and the price is also good, we see no obstacle to buying from America.

Where have we been buying from until now anyway?

From large trading companies, in fact.

Well, whether they are American or European,

this is what we ask of them through the Ministry of Agriculture.

So, therefore, we have no obstacles.

Therefore, God willing, in the coming days,

we will make the first purchase batch,

and my colleagues and I are doing the planning,

in cooperation with the Ministry of Agriculture and the Ministry of Health,

so that, God willing, through that channel,

we can buy the goods we need.

The second point is regarding the sanctions...

Let me just point out one thing regarding the previous issue.

Some also say, "Regarding this money,

who does it actually belong to?

Does it go back to the government budget?"

Let me explain.

The Central Bank had previously bought these from the government,

so it has already given the Rial equivalent to the government,

and these are part of the Central Bank's reserves.

Therefore, if the Central Bank

spends these reserves to buy basic goods,

it will sell those basic goods domestically

at transaction rates in Rials.

Therefore, it helps to...

part of the Rials and liquidity that exist in society,

the Central Bank collects from this side.

Therefore, it helps the Central Bank...

If it wants to collect Rials from this side,

to be able to collect the society's Rials.

The second point is in connection with the waiver that

has been granted for the sale of oil.

Well, one of the clauses of the agreement was that

during the negotiations, meaning in these 60 days,

we would be able to, in fact, outside of those sanction pressures,

export oil and other derivatives, including petrochemicals,

be able to export them,

deliver them to any port,

and transport them using any type of ship,

and to any account that we declare,

meaning our oil company coordinates with us

and declares for it to be deposited there,

and we can use those resources and funds.

It has even gone further and written

that it can even be done in dollars.

Of course, their emphasis was that it should all be in dollars,

but we said no,

we will do this if we can.

No, we don't have any particular insistence.

It depends on where we want to spend that money.

Therefore, both our oil and our petrochemicals,

as well as our other oil derivatives,

or our petroleum products,

are actually exempt in this regard.

This is a big part of it.

We are exporting oil even right now.

We have exported millions of barrels of oil over the past few days.

But the benefit is that those money transfer costs

and the issues that exist, we won't have them anymore.

Of course, this does not mean that the network we previously created

to neutralize the pressure of sanctions,

is going to be dismantled. No,

they will remain in place.

We must proceed gradually

and test the waters,

to see how the process of lifting sanctions will unfold in the future,

and based on that, plan our sales and financial transfers,

and plan our oil sales.