US could release $20bn in frozen funds if Iran gives up uranium stockpile - report

(Sharecast News) - The US is reportedly considering the release of $20bn in frozen Iranian funds in return for Iran giving up its stockpile of enriched uranium as part of negotiations over a three-page plan to end the war. According to Axios, which cited two US officials and two additional sources briefed on the talks, a top priority for the Trump administration is ensuring Iran can't access the stockpile of nearly 2,000kg of enriched uranium buried in its underground nuclear facilities, in particular the 450kg enriched to 60% purity.

It was understood the parties are negotiating over what will happen to the stockpile, and how much of Iran's assets will be unfrozen. They are also discussing the terms on which Iran could use that money.

Sources told Axios that the latest number discussed by the US and Iran is $20bn. One US official said that was a US proposal. The other US official described the cash-for-uranium concept as "one of many discussions".

Meanwhile, the US asked Iran to agree to ship all its nuclear material to the US, while the Iranians only agreed to "down-blend" it inside Iran, Axios reported.

Under a compromise proposal now under discussion, some of the highly enriched uranium would be shipped to a third country, not necessarily the US, and some of it would be down-blended in Iran under international monitoring.

Axios said the memorandum of understanding (MOU) being negotiated also includes a "voluntary" moratorium on nuclear enrichment by Iran. The US demanded in the last round of talks that Iran agree to a 20-year moratorium, which Iran countered with five years. The mediators are still trying to close the gap.

As part of the MOU, Iran would be allowed to have nuclear research reactors for the production of medical isotopes, but would pledge that all of its nuclear facilities would be above ground. The existing underground facilities would remain out of commission.

The MOU also deals with the Strait of Hormuz, though sources told Axios there are still significant gaps on that issue.

One official told Axios that Iran clearly wants the $20bn "and a lot more".

"They clearly want to sell oil at free-market rates without sanctions," he said. "They want to participate in the global financial system. But they also want to have this nuclear weapons program. They want to fund terrorists like Hamas. And they don't want to give that up enough to get the things we're offering."