Fact Sheet: First Step Understandings Regarding the Islamic Republic of Iran's Nuclear Program
The P5+1 (the United States, United Kingdom,
Germany, France, Russia, and China, facilitated by the European Union)
has been engaged in serious and substantive negotiations with Iran with
the goal of reaching a verifiable diplomatic resolution that would
prevent Iran from obtaining a nuclear weapon.
President Obama has been clear that achieving a
peaceful resolution that prevents Iran from obtaining a nuclear weapon
is in America's national security interest. Today, the P5+1 and Iran
reached a set of initial understandings that halts the progress of
Iran's nuclear program and rolls it back in key respects. These are the
first meaningful limits that Iran has accepted on its nuclear program in
close to a decade. The initial, six month step includes significant
limits on Iran's nuclear program and begins to address our most urgent
concerns including Iran's enrichment capabilities; its existing
stockpiles of enriched uranium; the number and capabilities of its
centrifuges; and its ability to produce weapons-grade plutonium using
the Arak reactor. The concessions Iran has committed to make as part of
this first step will also provide us with increased transparency and
intrusive monitoring of its nuclear program. In the past, the concern
has been expressed that Iran will use negotiations to buy time to
advance their program. Taken together, these first step measures will
help prevent Iran from using the cover of negotiations to continue
advancing its nuclear program as we seek to negotiate a long-term,
comprehensive solution that addresses all of the international
community's concerns.
In return, as part of this initial step, the
P5+1 will provide limited, temporary, targeted, and reversible relief to
Iran. This relief is structured so that the overwhelming majority of
the sanctions regime, including the key oil, banking, and financial
sanctions architecture, remains in place. The P5+1 will continue to
enforce these sanctions vigorously. If Iran fails to meet its
commitments, we will revoke the limited relief and impose additional
sanctions on Iran.
The P5+1 and Iran also discussed the general
parameters of a comprehensive solution that would constrain Iran's
nuclear program over the long term, provide verifiable assurances to the
international community that Iran's nuclear activities will be
exclusively peaceful, and ensure that any attempt by Iran to pursue a
nuclear weapon would be promptly detected. The set of understandings
also includes an acknowledgment by Iran that it must address all United
Nations Security Council resolutions -- which Iran has long claimed are
illegal -- as well as past and present issues with Iran's nuclear
program that have been identified by the International Atomic Energy
Agency (IAEA). This would include resolution of questions concerning the
possible military dimension of Iran's nuclear program, including Iran's
activities at Parchin. As part of a comprehensive solution, Iran must
also come into full compliance with its obligations under the
Non-Proliferation Treaty (NPT) and its obligations to the IAEA. With
respect to the comprehensive solution, nothing is agreed until
everything is agreed. Put simply, this first step expires in six months,
and does not represent an acceptable end state to the United States or
our P5+1 partners.
Halting the Progress of Iran's Program and Rolling Back Key Elements
Iran has committed to halt enrichment above 5%:
Iran has committed to neutralize its stockpile of near-20% uranium:
Iran has committed to halt progress on its enrichment capacity:
Iran has committed to halt progress on the growth of its 3.5% stockpile:
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Not increase its stockpile of 3.5% low enriched
uranium, so that the amount is not greater at the end of the six months
than it is at the beginning, and any newly enriched 3.5% enriched
uranium is converted into oxide.
Iran has committed to no further advances of
its activities at Arak and to halt progress on its plutonium track. Iran
has committed to:
Unprecedented transparency and intrusive monitoring of Iran's nuclear program
Iran has committed to:
Verification Mechanism
The IAEA will be called upon to perform many
of these verification steps, consistent with their ongoing inspection
role in Iran. In addition, the P5+1 and Iran have committed to
establishing a Joint Commission to work with the IAEA to monitor
implementation and address issues that may arise. The Joint Commission
will also work with the IAEA to facilitate resolution of past and
present concerns with respect to Iran's nuclear program, including the
possible military dimension of Iran's nuclear program and Iran's
activities at Parchin.
Limited, Temporary, Reversible Relief
In return for these steps, the P5+1 is to
provide limited, temporary, targeted, and reversible relief while
maintaining the vast bulk of our sanctions, including the oil, finance,
and banking sanctions architecture. If Iran fails to meet its
commitments, we will revoke the relief. Specifically the P5+1 has
committed to:
-
Suspend certain sanctions on gold and precious metals,
Iran's auto sector, and Iran's petrochemical exports, potentially
providing Iran approximately $1.5 billion in revenue.
-
Allow purchases of Iranian oil to remain at their
currently significantly reduced levels -- levels that are 60% less than
two years ago. $4.2 billion from these sales will be allowed to be
transferred in installments if, and as, Iran fulfills its commitments.
Humanitarian Transactions
Facilitate humanitarian transactions that are
already allowed by U.S. law. Humanitarian transactions have been
explicitly exempted from sanctions by Congress so this channel will not
provide Iran access to any new source of funds. Humanitarian
transactions are those related to Iran's purchase of food, agricultural
commodities, medicine, medical devices; we would also facilitate
transactions for medical expenses incurred abroad. We will establish
this channel for the benefit of the Iranian people.
Putting Limited Relief in Perspective
In total, the approximately $7 billion in
relief is a fraction of the costs that Iran will continue to incur
during this first phase under the sanctions that will remain in place.
The vast majority of Iran's approximately $100 billion in foreign
exchange holdings are inaccessible or restricted by sanctions.
In the next six months, Iran's crude oil sales
cannot increase. Oil sanctions alone will result in approximately $30
billion in lost revenues to Iran -- or roughly $5 billion per month --
compared to what Iran earned in a six month period in 2011, before these
sanctions took effect. While Iran will be allowed access to $4.2
billion of its oil sales, nearly $15 billion of its revenues during this
period will go into restricted overseas accounts. In summary, we expect
the balance of Iran's money in restricted accounts overseas will
actually increase, not decrease, under the terms of this deal.
Maintaining Economic Pressure on Iran and Preserving Our Sanctions Architecture
During the first phase, we will continue to
vigorously enforce our sanctions against Iran, including by taking
action against those who seek to evade or circumvent our sanctions.
-
Sanctions affecting crude oil sales will continue to
impose pressure on Iran's government. Working with our international
partners, we have cut Iran's oil sales from 2.5 million barrels per day
(bpd) in early 2012 to 1 million bpd today, denying Iran the ability to
sell almost 1.5 million bpd. That's a loss of more than $80 billion
since the beginning of 2012 that Iran will never be able to recoup.
Under this first step, the EU crude oil ban will remain in effect and
Iran will be held to approximately 1 million bpd in sales, resulting in
continuing lost sales worth an additional $4 billion per month, every
month, going forward.
- Sanctions against the Central Bank of Iran and approximately two dozen other major Iranian banks and financial actors;
- Secondary sanctions, pursuant to the
Comprehensive Iran Sanctions, Accountability, and Divestment Act
(CISADA) as amended and other laws, on banks that do business with
U.S.-designated individuals and entities;
- Sanctions on those who provide a broad range of other financial services to Iran, such as many types of insurance; and,
- Restricted access to the U.S. financial system.
-
All of our targeted sanctions related to Iran's state
sponsorship of terrorism, its destabilizing role in the Syrian conflict,
and its abysmal human rights record, among other concerns, remain in
effect.
A Comprehensive Solution
During the six-month initial phase, the P5+1
will negotiate the contours of a comprehensive solution. Thus far, the
outline of the general parameters of the comprehensive solution
envisions concrete steps to give the international community confidence
that Iran's nuclear activities will be exclusively peaceful. With
respect to this comprehensive resolution: nothing is agreed to with
respect to a comprehensive solution until everything is agreed to. Over
the next six months, we will determine whether there is a solution that
gives us sufficient confidence that the Iranian program is peaceful. If
Iran cannot address our concerns, we are prepared to increase sanctions
and pressure.
Conclusion
In sum, this first step achieves a great deal
in its own right. Without this phased agreement, Iran could start
spinning thousands of additional centrifuges. It could install and spin
next-generation centrifuges that will reduce its breakout times. It
could fuel and commission the Arak heavy water reactor. It could grow
its stockpile of 20% enriched uranium to beyond the threshold for a
bomb's worth of uranium. Iran can do none of these things under the
conditions of the first step understanding.
Furthermore, without this phased approach, the
international sanctions coalition would begin to fray because Iran
would make the case to the world that it was serious about a diplomatic
solution and we were not. We would be unable to bring partners along to
do the crucial work of enforcing our sanctions. With this first step, we
stop and begin to roll back Iran's program and give Iran a sharp
choice: fulfill its commitments and negotiate in good faith to a final
deal, or the entire international community will respond with even more
isolation and pressure.
The American people prefer a peaceful and enduring
resolution that prevents Iran from obtaining a nuclear weapon and
strengthens the global non-proliferation regime. This solution has the
potential to achieve that. Through strong and principled diplomacy, the
United States of America will do its part for greater peace, security,
and cooperation among nations.