US President Donald Trump has denied reports that a future agreement with Iran would include a $300 billion fund for reconstruction and economic development, despite language in a memorandum of understanding that refers to such a financing plan.
Speaking at the G7 summit in France, Trump dismissed suggestions that Washington would be contributing to any large-scale funding plan for Tehran’s post-war economic revival.
“That’s false,” Trump said when asked about reports of a $300 billion reconstruction initiative.
When asked about reports that the fund would be financed by Gulf states, Trump said “People can invest if they want.
I mean, what am I going to do — say nobody’s ever allowed to invest? We’re not investing. We’re not putting up ten cents. People can decide to do that, but that’s up to them… We do not have a fund.”
However, the text of the MOU, due to be physically signed by both sides on Friday, as noted by Times Of Israel, includes a clause which reads: “The United States undertakes, together with its regional partners, to create a comprehensive plan agreed upon by both parties for the rehabilitation and economic development of the Islamic Republic of Iran, while ensuring financing of at least $300 billion. The implementation mechanism of this plan, as part of the final agreement, will be formulated within 60 days.”
Trump’s comments appeared to focus on direct US financial involvement rather than the existence of a broader investment framework.
Asked whether he was encouraging Gulf countries to finance such a programme, Trump replied that he was not.
“If they do it, fine,” he said. “But I would say they won’t be doing it for a while until they find out the behaviour of Iran.”
The proposed financing mechanism remains one of several issues expected to be discussed during a 60-day negotiating period that will begin after the memorandum is formally signed.
Reportedly, the fund would be private and would be geared towards triggering investment into Iran, with more than half of the sum having already been committed. As per the Financial Times, the fund would be created for companies eager to invest in the country and not for governments.
Negotiators from the US and Iran are expected to meet in Switzerland on Friday to start talks on a long-term settlement covering Iran’s nuclear programme, sanctions relief and regional security issues.
