The United States State Department has issued a warning to India regarding potential sanctions after the country finalized a 10-year agreement with Iran to assume control of operations at the Chabahar port.
During a press briefing in Washington, State Department Spokesperson Vedant Patel emphasized the ongoing sanctions against Iran and cautioned any entity engaging in business dealings with the country about the associated risks. Patel reiterated that the US would continue to enforce these sanctions, underscoring that Indian firms were not exempt from the potential consequences.
The State Department’s statement follows the signing of a significant 10-year contract between India and Iran aimed at the development and enhancement of the strategic Chabahar port. Positioned near Iran’s southeastern border with Pakistan, this port holds strategic importance for India’s efforts to expand trade in west and central Asia.
Under the terms of the agreement, India Ports Global Limited (IPGL) will invest $370 million to upgrade the port’s infrastructure and provide essential equipment. The contract was formally sealed in a ceremony attended by Iran’s urban development minister Mehrdad Bazrpash and India’s ports and shipping minister Sarbananda Sonowal in Chabahar.
India’s interest in the Chabahar port dates back to 2016 when Prime Minister Narendra Modi committed to financing its development as part of efforts to strengthen economic ties with Tehran following the lifting of sanctions. However, progress on the project had been hindered, despite exemptions to US sanctions initially granted after the 2015 nuclear deal withdrawal.
Both Bazrpash and Sonowal expressed optimism about the agreement, highlighting the potential for Chabahar to become a pivotal hub for regional transit and trade. They affirmed the shared commitment of Iran and India to maximize the port’s potential for mutual benefit and expanded access to regional markets.
The long-term contract signifies the enduring partnership and trust between the two nations. Efforts to accelerate the project were reaffirmed in 2019, prior to the COVID-19 pandemic, signaling a continued commitment to realizing the port’s strategic significance in facilitating regional connectivity and economic development.
