What did India say in response to US sanctions on Chabahar Port Iran?
The US has decided to end the sanctions waiver granted for Iran's Chabahar Port project. India has now stated that it is studying the impact of this decision on its operations.
The move stands to impact India's plans to develop the port. An Indian-state run company is engaged in the development of a terminal at the Chabahar port, and India eyes the port as an important project in context of regional trade and connectivity initiatives.
The US administration said that the move to revoke sanctions exception was in line with President Donald Trump's “maximum pressure policy” against the Iranian regime. “Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities may expose themselves to sanctions,” the US State Department's release read.
India and Iran signed a 10-year agreement linked to Chabahar Port in May
In May this year, India and Iran signed a 10-year agreement linked to the Chabahar Port operations as part of which New Delhi offered a credit window worth $250 million for infrastructure development at the port in the Gulf of Oman.
We are examining the impact of this decision: Jaiswal
Ministry of External Affairs Spokesperson Randhir Jaiswal said, "We have seen the press statement issued by the US government regarding the withdrawal of the waiver for Chabahar Port. We are examining the impact of this decision on India."
US granted a sanctions waiver to Chabahar in 2018
In 2018, the US granted a sanctions waiver to the Chabahar Port project. The primary reason for this was to allow Afghanistan to continue importing Iranian petroleum products. US forces were present in Afghanistan at that time.
In 2023, India shipped 20,000 tons of wheat to Afghanistan through the Chabahar port. In 2021, eco-friendly pesticides were supplied to Iran through the same port.
But under the new policy, this exemption will now be abolished.