Iran Sanctions Seen Lifted by Monday Once Nuclear Deal Verified

By Jonathan Tirone Golnar Motevalli
January 13, 2016 — 7:41 AM EST
Updated on January 13, 2016 — 8:46 AM EST

A decade of sanctions imposed on Iran’s nuclear program may come to an end by Monday, unlocking billions of dollars in frozen accounts and paving the way for a surge in oil exports from the Islamic Republic.

The International Atomic Energy Agency is expected to report on Friday that Iran has fulfilled its commitments under July’s nuclear accord with world powers, Iran’s Deputy Foreign Minister Abbas Araghchi said in Tehran. That would enable a joint announcement by Sunday implementing the deal and lifting sanctions, he said.

Iran’s foreign ministry on Tuesday sent its director of political and international affairs, Hamid Baeedinejad, to Vienna, where the IAEA is based.

The end to nuclear-related sanctions will mean that the Iranian economy is open for funds to flood in, with Iran set to get immediate access to as much as $50 billion of cash frozen in overseas accounts, according to U.S. Treasury estimates. Crude exports are expected to rise by half-a-million barrels a day within weeks.

While Iran says it will need $100 billion to rebuild its energy industry and another $29 billion for mining and steel, foreign investors are expected to return only gradually as they wait to make sure the nuclear deal holds. Diplomats left escape clauses if the accord is violated. Should the deal fail, sanctions could be reimposed just as Iran’s nuclear work could return to unchecked development.

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http://www.bloomberg.com/news/articles/2016-01-13/iran-sanctions-seen-lifted-by-monday-as-nuclear-deal-implemented