$400 million sent to Iran as U.S. prisoners released, raising questions
Secret payout unrelated, U.S. officials say
AFP/Getty Images
WASHINGTON — The Obama administration secretly
organized an airlift of $400 million worth of cash to Iran
that coincided with the January release of four Americans
detained in Tehran, according to U.S. and European
officials and congressional staff briefed on the operation
afterward.
organized an airlift of $400 million worth of cash to Iran
that coincided with the January release of four Americans
detained in Tehran, according to U.S. and European
officials and congressional staff briefed on the operation
afterward.
Wooden pallets stacked with euros, Swiss francs and
other currencies were flown into Iran on an unmarked
cargo plane, according to these officials. The U.S.
procured the money from the central banks of the
Netherlands and Switzerland, they said.
other currencies were flown into Iran on an unmarked
cargo plane, according to these officials. The U.S.
procured the money from the central banks of the
Netherlands and Switzerland, they said.
The money represented the first installment of a $1.7
billion settlement the Obama administration reached with
Iran to resolve a decades-old dispute over a failed arms
deal signed just before the 1979 fall of Iran’s last
monarch, Shah Mohammad Reza Pahlavi.
billion settlement the Obama administration reached with
Iran to resolve a decades-old dispute over a failed arms
deal signed just before the 1979 fall of Iran’s last
monarch, Shah Mohammad Reza Pahlavi.
The settlement, which resolved claims before an
international tribunal in The Hague, also coincided
with the formal implementation that same weekend of
the landmark nuclear agreement reached between
Tehran, the U.S. and other global powers the summer
before.
international tribunal in The Hague, also coincided
with the formal implementation that same weekend of
the landmark nuclear agreement reached between
Tehran, the U.S. and other global powers the summer
before.
“With the nuclear deal done, prisoners released, the
time was right to resolve this dispute as well,” President
Barack Obama said at the White House on Jan. 17 —
without disclosing the $400 million cash payment.
time was right to resolve this dispute as well,” President
Barack Obama said at the White House on Jan. 17 —
without disclosing the $400 million cash payment.
Senior U.S. officials denied any link between the
payment and the prisoner exchange. They say the way
the various strands came together simultaneously was
coincidental, not the result of any quid pro quo.
payment and the prisoner exchange. They say the way
the various strands came together simultaneously was
coincidental, not the result of any quid pro quo.
“As we’ve made clear, the negotiations over the settlement
of an outstanding claim…were completely separate from
the discussions about returning our American citizens
home,” State Department spokesman John Kirby said.
“Not only were the two negotiations separate, they were
conducted by different teams on each side, including,
in the case of The Hague claims, by technical experts
involved in these negotiations for many years.”
of an outstanding claim…were completely separate from
the discussions about returning our American citizens
home,” State Department spokesman John Kirby said.
“Not only were the two negotiations separate, they were
conducted by different teams on each side, including,
in the case of The Hague claims, by technical experts
involved in these negotiations for many years.”
But U.S. officials also acknowledge that Iranian
negotiators on the prisoner exchange said they
wanted the cash to show they had gained something
tangible.
negotiators on the prisoner exchange said they
wanted the cash to show they had gained something
tangible.
Sen. Tom Cotton, a Republican from Arkansas and a
fierce foe of the Iran nuclear deal, accused President
Barack Obama of paying “a $1.7 billion ransom to the
ayatollahs for U.S. hostages.”
fierce foe of the Iran nuclear deal, accused President
Barack Obama of paying “a $1.7 billion ransom to the
ayatollahs for U.S. hostages.”
“This break with longstanding U.S. policy [not to] put a
price on the head of Americans, and has led Iran to
continue its illegal seizures” of Americans, he said.
price on the head of Americans, and has led Iran to
continue its illegal seizures” of Americans, he said.
Since the cash shipment, the intelligence arm of the
Revolutionary Guard has arrested two more Iranian-
Americans. Tehran has also detained dual-nationals
from France, Canada and the U.K. in recent months.
Revolutionary Guard has arrested two more Iranian-
Americans. Tehran has also detained dual-nationals
from France, Canada and the U.K. in recent months.