US-Iran Framework Includes $300 Billion Private Investment Fund for Iran Reconstruction

WASHINGTON/TEHRAN,Jun 17:  A reported US-Iran framework agreement includes plans for a $300 billion private investment fund aimed at supporting investment and reconstruction projects in Iran, with more than half of the amount already committed, Reuters reported on Tuesday, citing a source with direct knowledge of the agreement.

According to the source, the proposed Reconstruction and Development Fund is designed to create economic incentives for both sides to reach a final agreement. The fund would rely entirely on private investment and would not include government funding or grants.

The report said companies from the United States, Persian Gulf countries, Asia, South America and Africa have agreed to provide financing, with planned investments covering sectors including energy, logistics, manufacturing and transportation.

A senior Iranian source told Reuters that Tehran had initially sought $400 billion in compensation from the United States for war-related damages, but Washington rejected the request. The idea of establishing a reconstruction fund later emerged as an alternative approach.

The Iranian source said regional countries could participate by arranging loans, creating credit facilities or directly financing reconstruction projects at damaged sites, including the Mobarakeh Steel complex, refineries, airports and other infrastructure facilities.

Reuters reported that the investment fund would be separate from negotiations concerning the lifting of US sanctions and the release of frozen Iranian assets.

The fund would only be established and become operational after a final and acceptable agreement is signed. During a reported 60-day memorandum period, fund administrators would work with Iranian officials and potential investors to identify, plan and evaluate future projects.

The reported investment initiative comes as Washington and Tehran continue discussions over a broader framework that includes economic measures, sanctions relief and issues related to Iran’s nuclear program