First block of $4.2 billion in frozen assets to be released next month

A landmark deal that curbs parts of Iran's disputed nuclear program in exchange for sanctions relief will take effect on Jan 20, Teheran and Western powers have announced.

After two days of exhaustive talks, Iran and the European Union - which represents the P5+1 of Britain, China, France, Russia and the United States plus Germany - agreed on Friday on how to implement the deal.

EU foreign policy chief Catherine Ashton said the agreement lays "the foundations for a coherent, robust and smooth implementation" of the November deal for the next six months.

US President Barack Obama welcomed the news, but warned there was still a rough road ahead to clinch a comprehensive deal.

Western nations and Israel have long suspected Iran of pursuing a nuclear weapons capability alongside its civilian program, charges the Islamic republic fiercely denies.

Teheran agreed in November to roll back parts of its nuclear work and halt further advances in exchange for the release of billions of dollars in frozen assets and limited relief from sanctions that have choked its economy.

The deal was a major achievement for President Hassan Rouhani, who won a first-round electoral victory last year by vowing a more diplomatic approach with the West after eight years of stalled talks and escalating sanctions under his predecessor Mahmoud Ahmadinejad.

Assets unblocked

A senior US official said that the first $550-million installment of $4.2 billion in frozen assets would be released early next month.

"The installment schedule starts on Feb 1 and the payments are evenly distributed" across 180 days, the official said.

Similar amounts will be unblocked roughly every month for six months.

Iran's chief nuclear negotiator Abbas Araqchi said Teheran would keep to its part of the bargain, with half of its 20-percent-enriched uranium diluted or oxidized.

A US official warned the sanctions relief would be terminated if Teheran did not comply.

Obama said the move by both sides was an "important step forward" and stressed the focus was now "on the critical work of pursuing a comprehensive resolution that addresses our concerns over Iran's nuclear program".

"I have no illusions about how hard it will be to achieve this objective, but for the sake of our national security, and the peace and security of the world, now is the time to give diplomacy a chance to succeed," said Obama.

The US president said he would veto any attempt by Congress to impose new sanctions on Iran during the next phase of negotiations.

China welcomes the deal and appreciates the diplomatic efforts made by all parties, said Foreign Ministry spokeswoman Hua Chunying on Monday.

"In the next stage, we hope all parties can work together to ensure a sufficient and efficient implementation of the agreement, and continue equal dialogue and commit themselves to further negotiations to reach a final agreement," she said.

China believes in solving the Iranian nuclear issue through dialogue, and advocates looking for a solution that ensures international non-proliferation as well as peace and stability in the Middle East, she said.

Beijing has taken an active part in negotiations, pushed parties to accommodate each other's concerns to thoroughly resolve the issue, and made constructive efforts for substantive progress in the talks, she said.

British Foreign Secretary William Hague and US Secretary of State John Kerry also welcomed the setting of the implementation date.

"The entry into force of this agreement on Jan 20 is an important step towards peacefully resolving the Iranian nuclear issue, on which comprehensive negotiations will now start," said Hague.

Kerry said the development was a "critical, significant step forward".

AFP-China Daily

(China Daily 01/14/2014 page11)