Family Of Swede Detained In Iran Calls For International Support

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When $6 billion of unfrozen Iranian funds are wired to banks in Qatar as early as next week, it will trigger a carefully choreographed sequence that will see as many as five detained US dual nationals leave Iran and a similar number of Iranian prisoners held in the US fly home, according to eight Iranian and other sources familiar with the negotiations who spoke to Reuters.

As a first step, Iran on Aug. 10 released four US citizens from Tehran’s Evin prison into house arrest, where they joined a fifth, who was already under house arrest. Later that day US Secretary of State Antony Blinken called the move the first step of a process that would lead to their return home.

They include businessmen Siamak Namazi, 51, and Emad Sharqi, 59, as well as environmentalist Morad Tahbaz, 67, who also holds British nationality, the US administration has said. The Tahbaz and Shargi families did not respond to requests for comment. A lawyer for the Namazi family declined to comment.

The identities of the fourth and fifth Americans, one of whom according to two sources is a woman, have not been disclosed. Reuters couldn't establish which Iranian prisoners, in turn, would be swapped by the US.

At the centre of the negotiations that forged this deal between the superpower which Iran brands the "Great Satan”, and the Islamic Republic which Washington calls a state sponsor of terrorism is the tiny but hugely rich state of Qatar.

Doha hosted at least eight rounds of talks involving Iranian and US negotiators sitting in separate hotels speaking via shuttle diplomacy, a source briefed on the discussions said, with the earlier sessions focused mainly on the thorny nuclear issue and the later ones on the prisoner releases.

Doha will implement a financial arrangement under which it will pay banking fees and monitor how Iran spends the unfrozen cash to ensure no money is spent on items under US sanctions, and the prisoners will transit Qatar when they are swapped, according to three of the sources.

"Iran initially wanted direct access to the funds but in the end agreed to having access via Qatar," said a senior diplomat. "Iran will purchase food and medicine and Qatar will pay directly."

Reuters pieced together this account of previously unreported details about the extent of Qatari mediation of the secret talks, how the deal unfolded and the expediency that motivated both parties to clinch the prisoner swap deal. Reuters interviewed four Iranian officials, two US sources, a senior Western diplomat, a Persian Gulf government adviser and the person familiar with the negotiations.

All of the sources requested anonymity because of the sensitivity of a deal which hasn’t been fully implemented.

A State Department spokesperson said the US was not ready to announce the exact timing of the prisoner release. The Department also declined to discuss the details of what the spokesperson termed "an ongoing and highly sensitive negotiation.”

‘YOU CAN BUILD TRUST’

The US administration has not commented on the timing of the funds transfer. However, on Sept 5, South Korean foreign minister Park Jin said efforts were under way to transfer Iran's funds.

"The US-Iran relationship is not one characterized by trust. We judge Iran by its actions, nothing else," the State Department spokesperson added.

Washington consented to the movement of Iranian funds from South Korea to restricted accounts held by financial institutions in Qatar, but no money is going to Iran directly, the spokesperson added.

Qatar’s Ministry of Foreign Affairs did not respond to Reuters' request for comment on the details of negotiations, Qatar’s role in the talks or the terms of the final agreement.

Iran’s foreign ministry and its UN mission did not respond to detailed questions regarding this story.

The sources' account of the negotiation shows how the deal sidestepped the main US-Iran dispute over Iran's nuclear aims, culminating in a rare moment of cooperation between the long-time adversaries, at odds on a host of issues from Iran's nuclear program to the US military presence in the Persian Gulf.

Ties between the US and Iran have been at boiling point since Donald Trump quit a nuclear deal with Iran as US president in 2018. Reaching another nuclear deal has gained little traction since then, as President Joe Biden prepares for the 2024 US election.

The State Department spokesperson also said there had been no change in Washington's overall approach to Iran, "which continues to be focused on deterrence, pressure and diplomacy."

Once the funds are transferred, they will be held in restricted accounts in Qatar, and the US will have oversight as to how and when these funds are used, the State Department spokesperson added.

The potential transfer has drawn Republican criticism that Biden, a Democrat, is in effect paying ransom for US citizens. But Blinken told reporters on Aug 10 the deal does not mean that Iran would be getting any sanctions relief, explaining that Washington would continue to push back "resolutely against Iran’s destabilising activities in the region".

The Qatari-led mediation gained momentum in June 2023, said the source briefed on the discussions, adding at least eight rounds of talks were held since March 2022, with earlier rounds devoted mainly to the nuclear issue and later ones to prisoners.

"They all realised that nuclear (negotiation) is a dead end and shifted focus to prisoners. Prisoners is more simple. It’s easy to get and you can build trust," he said. "This is when things got serious again."

PRISONERS EXPECTED TO TRANSIT QATAR

The Iranian, diplomatic and regional sources said that once the money reaches Qatar from South Korea via Switzerland, Qatari officials will instruct Tehran and Washington to proceed with the releases under the terms of a document signed by both sides and Qatar in late July or early August. Reuters has not seen the document.

The transfer to banks in Qatar is expected to conclude as early as next week if all goes to plan, the source briefed on the talks said. Reuters was unable to identify the banks involved.

“American prisoners will fly to Qatar from Tehran and Iranian prisoners will fly from the US to Qatar, and then be transferred to Iran,” the source briefed on the talks told Reuters.

According to two Iranian insiders, the source briefed on the negotiations and the senior Western diplomat, the talks' most complex part was arranging a mechanism to ensure transparency in the money transfer and respect for US sanctions. The $6 billion in Iranian assets – the proceeds of oil sales – were frozen under sweeping US oil and financial sanctions against Iran. Then president Trump in 2018 reimposed the sanctions when he pulled Washington out of a deal under which Iran had restricted its nuclear program.

Issues discussed included how to ensure Iran only spent the money on humanitarian goods and securing guarantees from Qatar on its monitoring of the process.

"To salvage the negotiations from collapse, Qatar pledged to cover the banking fees for the funds' transfer from Seoul to Switzerland, and subsequently to Qatari banks, while also taking on the responsibility of expense oversight," an Iranian insider briefed about the talks told Reuters.

The central bank governors of Iran and Qatar met in Doha on June 14 to discuss the funds transfer, a second Iranian insider and the source briefed on the talks said.

The Central Bank of Iran and the Qatar central bank declined to comment .

The talks were led by US Special Envoy for Iran Robert Malley -- now on unpaid leave because his security clearance is under review -- and by US Deputy Special Envoy Abram Paley and Iran's chief nuclear negotiator, Ali Bagheri Kani, said one Iranian official, two sources briefed on the negotiations and the Western diplomat.

Mehdi Safari, Iran’s deputy foreign minister for economic affairs, joined the Iranian delegation at two meetings in Qatar for talks on the funds transfer, one senior Iranian diplomat told Reuters. Qatari Minister of State at the Foreign Ministry Mohammed Al-Khulaifi was the go-between mediator.

Malley declined to comment. Paley, Kani and Al Khulaifi could not be reached directly for comment.

The parliament is expected to vote soon on a draft law that was crafted to increase a variety of punishments for women who appear in public without observing the full requirements of the government dress code. The measures include hefty cash fines, denial of public services to women without hijab, and even prison for repeat offenders.

Abdol-Hossein Khosropanah secretary of the Islamic Republic’s Supreme Cultural Council said Saturday that hijab serves the interests of the Islamic society and “the Muslim ruler” must make it mandatory.

Many Iranian women have stopped wearing the hijab after nationwide protests following Mahsa Amini’s death in the custody of the morality police in September 2022.

For a few months, authorities did not act against the phenomenon, afraid of inflaming the public and triggering more protests. However, since January they have begun a full campaign to enforce the dress code. Parliament’s draft law is the latest measure to force women to wear the hijab.

Many clerics and hardline members and supporters of the regime argue that the fate of the Islamic Republic depends on enforcing hijab, and if women are allowed to act as they wish it would weaken the foundations of clerical rule.

Iran International sources report that regime agents have set up nighttime checkpoints amid a significant buildup of security forces in city centers.

These measures include enhanced protection for government buildings, a substantial increase in law enforcement personnel, and plainclothes motorcycle patrols, according to eyewitness accounts.

The regime has also erected numerous banners in major city centers warning citizens of severe penalties for dress code violations, seemingly as a deliberate effort to instill fear and discourage potential protests.

Last year's brutal crackdown by the regime during the protests following Amini's death, resulted in the deaths of over 500 civilians, with thousands more sustaining injuries and tens of thousands imprisoned.

Despite the intensified intimidation campaign, several calls for protests and strikes have been issued online by major dissident figures and groups. In a joint statement, eight labor and civil organizations reaffirmed their commitment to keeping the revolutionary movement ignited by the death of Mahsa Jina Amini in police custody. They called upon the people to take to the streets, launch strikes, and hold gatherings on her death anniversary on September 16.

The group of eight organization referred to the anniversary protests as an opportunity for a "fresh start" in the course of the revolutionary movement, stating, "With the strength of our struggle, we will turn the anniversary of the Women, Life, Freedom movement into our annual public holiday."

The signatories of the statement include the Council for Organizing Contract Workers' Protests in the Oil Industry, the Association of Electricity and Metalworkers in Kermanshah, the Follow-up Committee for Workers' Associations, and the Independent Voice of Steel Workers.

A few days after a call for action by Iran's exiled prince Reza Pahlavi, who has become a leading opposition figure in the current wave of protests, exiled Queen Farah Pahlavi seconded the call for Iranians to unite against the regime.

The queen also urged Iran's security and military forces not to stand against the people and protect the lives of protesters against the regime's suppression apparatus. Pahlavi hailed Mahsa Amini as a symbol for all those who over the past 44 years have strived to weaken religious tyranny and redress the setbacks inflicted on the country by the Islamic Republic, stating, "This shared pain is our commitment to achieving a common cure."

Calls for national rallies on the anniversary of protests have rekindled the "Woman, Life, Freedom" movement, which also embodies popular anger against poverty and various forms of discrimination, particularly gender-based and sexual discrimination, for over four decades.

For several months, the Supreme National Security Council has convened various meetings to prepare for potential public protests on the anniversary of the people's uprising. These meetings have led to the detention of family members of activists and political figures. However, the regime has yet to officially disclose the exact number of detainees, their charges, detention locations, or the authorities responsible for the detentions.

Nevertheless, according to the Human Rights Organization Hengaw, at least 70 family members of detainees, including nine children under the age of 18, have been arrested in various cities since the beginning of this year (March 22).

Based on information obtained by Iran International, security entities have also summoned some participants of last year's protests and are harassing the families of dead protesters to discourage them from partaking in protests.

These individuals have been pressured to remain in their homes during the week that coincides with September 16. Intelligence agencies have issued warnings that engagement in "any kind of activity in the virtual or public space" during the period will result in detention.

Iran this year provided Iraqi dinars, instead of US dollars, to hundreds of thousands of pilgrims who visited Iraq at the end of August and early September for Shiite religious ceremonies. Now it intends to use the same tactic for providing foreign currency to travelers visiting regional countries.

The Iraqi dinars became available to the cash-strapped Iranian government when the United States in June allowed Baghdad to repay the equivalent of $2.7 billion from accrued energy import debts. It was reported at the time that part of funds will be for Iran to spend on Muslim pilgrimages to Saudi Arabia and Iraq. Apparently, a portion of the released funds were in Iraqi dinars.

Iran is critically short of hard currencies despite much higher oil exports in recent months in the face of US sanctions.

The chairman of the central bank Mohammad-Reza Farzin told local media on Saturday that Iran intends to use the Turkish lira or the UAE dirham for regular tourism based on the model it employed with the recent pilgrimage to Iraq.

The US dollar and other top currencies are near all-time highs in Tehran’s free market, while the government could sell regional currencies to tourists, possibly at more advantageous rates, converting regional currencies it earns from trade into Iranian rials for government expenses.

Farzin added that the central bank is in the process of expert analysis and planning for the move.

Blasts were ringing out across the Ukrainian capital and its region for almost two hours and drone debris falling on several of the city's central districts, Ukrainian officials said.

Ukraine's Land Forces said that the country's air defence systems destroyed 25 out of 32 Russia-launched Iran-made Shahed drones, most of which targeted Kyiv and the Kyiv region.

Reuters witnesses heard at least five blasts across Kyiv, and Ukrainian media footage showed a number of cars damaged.

"Drones came onto the capital in groups and from different directions," Serhiy Popko, head of Kyiv's city military administration, said on the Telegram messaging app.

Iran has supplied hundreds of the killer drones to Russia since mid-2022, while denying any role in the war. Western allies have imposed sanctions on many individuals and entities involved in the supply of the weapon but have not increased overall sanctions on Iran. In a highly controversial move, the Biden administration in August released $6 billion of Iran’s frozen funds in South Korea in a hostage deal.

Kyiv Mayor Vitali Klitschko said that one person was injured in the historic Podil neighborhood, and a fire broke out near one of the city's parks.

Debris from downed drones fell on the Darnytskyi, Solomianskyi, Shevchenkivskyi, Sviatoshynskyi and Podil districts, Klitschko and the city's military administration said.

In the Shevchenkivskyi district, drone debris sparked a fire in an apartment, which was quickly extinguished. There were no immediate reports of injuries, Popko said on the Telegram messaging app.

With reporting by Reuters