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 While playing down the sanctions relief being discussed, the
administration was hoping it would be enough to finalize an initial
agreement with Iran next week in Geneva.
Last week's negotiations failed to reach an agreement between Iran
and six world powers — the U.S., Britain, France, Russia, China and
Germany — that would resolve a decade-long standoff over Iran's
nuclear program. The countries worry that Tehran is trying to
assemble an atomic weapons arsenal. Iran insists it has a right to
pursue a nuclear program solely for peaceful energy production and
medical research
Obama administration officials are optimistic that an initial deal
with Iran can be reached during the next round of talks, although
tough issues remain unresolved. The initial deal, designed to stop
the Iranian nuclear program from advancing and roll it back in key
areas, would be the first step toward negotiating a comprehensive
agreement. The initial agreement would include stepped-up monitoring
and verification aimed at preventing Iran from doing anything in
secret.
One official familiar with the negotiations said the sanctions
relief being offered to Iran was "way south" of "wildly exaggerated"
estimates that have been reported, which have ranged from $15
billion to $50 billion.
Another official, who is familiar with details of the sanctions
relief being considered, said the relief being discussed as part of
an initial six-month agreement would be "limited, temporary,
targeted and reversible."
The officials would not disclose the exact details of the proposal
offered Iran because negotiations have not yet been concluded, but
they offered explanations on the implications of what sanction
relief is being discussed. The officials spoke on condition of
anonymity because they were not authorized to discuss negotiations
publicly.
Sanctions have taken a toll on Iran's economy. Last year, Iran's
economy contracted by more than 5 percent and Iran's oil exports are
down from about 2.5 million barrels a day in 2011 to about 1 million
barrels a day now. These declining exports cost Iran about $5
billion a month and overall about $120 billion during the past
several years.
Sanctions also have limited or barred Iran's access to about $100
billion in reserves, the official familiar with the sanctions said.
If the agreement allows Iran to repatriate some of that money during
the initial phase, it would not be anywhere near enough to ease the
effect of sanctions on the Iranian economy, the official said.
Moreover, core sanctions, such as the U.S. trade embargo,
restrictions on Iranian banks and Iran's use of its oil revenues,
will all remain in place as well as sanctions over Iran's support of
terrorism and abuse of human rights.
Overlapping international sanctions have isolated Iran from the
international banking system. Because of the sanctions, Iran cannot
easily move money around the world. Even if Iran is given limited
access to some of its funds, it would continue to have a difficult
time moving and using the money.
Administration officials are worried that if Congress slaps new
sanctions on Iran, as some members have discussed doing, Tehran will
think the U.S. is negotiating in bad faith. But Democratic and
Republican lawmakers argue that if the deal does not force Iran to
put its nuclear program on hold, the U.S. shouldn't ease sanctions.
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Four Republican senators — New Hampshire's Kelly Ayotte, Florida's
Marco Rubio, Texas' John Cornyn and Illinois' Mark Kirk — wrote to
Obama on Friday expressing serious concerns that the United States
was considering sanctions relief for Iran "valued at up to $20
billion — and, in exchange, Iran would not be required to dismantle
a single centrifuge, close a single facility or ship outside its
borders a single kilogram of enriched uranium."
Still, the Democratic-controlled Senate could delay a likely vote on
a new round of sanctions on Iran. Republican and Democratic aides
said Friday that debate on the annual defense bill could be delayed
until later next week, in part because of Senate action on a
separate pharmaceutical bill. The sanctions were likely to be added
as an amendment to the defense bill. That vote could slip until
December, which would be after next week's talks in Geneva.
Israeli Prime Minister Benjamin Netanyahu also is vigorously opposed
to the proposal being discussed with Iran. He has spoken out in many
forums and took to Twitter on Friday to continue to warn against
rushing into what he said was a "bad deal."
"The proposal enables Iran to develop atomic bombs and build
long-range missiles to reach the U.S. and Europe," he wrote. "Iran
is getting everything and giving nothing."
The administration insists the proposal being discussed with Iran is
tough.
"We're continuing to convey to those who are opponents and those who
have claimed that this proposal is not a fair deal or one that makes
too many concessions, that if that is actually the case, why didn't
the Iranians accept the deal a week ago?" State Department
spokeswoman Jen Psaki asked.
Iranian Foreign Minister Mohammad Javad Zarif also said Friday that
he was hopeful about the next round of negotiations but said any
agreement that does not recognize and respect the rights of the
Iranian people has no chance of being approved. Iran refuses to
completely give up uranium enrichment — but the level of enrichment
has become a key aspect of the ongoing Geneva talks.
The U.S. and others no longer appear to demand a complete halt to
enrichment and are concentrating on curbing the highest-level
production, currently at 20 percent. Such material is needed for
Iran's lone research reactor, which makes isotopes for medical
treatments, but is only just several steps away from warhead level
at more than 90 percent enrichment. Energy-producing reactors use
uranium enriched at levels of about 3.5 percent.
[Associated
Press; DEB RIECHMANN]
Associated Press writers
Donna Cassata in Washington and Aron Heller in Jerusalem contributed
to this report.
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