WASHINGTON: The US government has revoked the sanctions waiver linked to the strategic Iranian port of Chabahar. The development would slow down the project India earnestly wanted to develop as its trade conduit to central asian states.
According to a statement from the US Department of State, the sanctions exception granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development has been revoked, effective September 29, in line with US President Donald Trump’s maximum-pressure policy aimed at isolating the Iranian regime, PTI reported. “Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA,” the statement read.
The US government’s decision may impact India, which is developing a terminal at the Chabahar port on the Gulf of Oman, according to a report by PTI. On May 13, 2024, Indian Ports Global Limited and the Port & Maritime Organisation of Iran signed the long-term agreement, which replaced an initial 2016 pact. It covered India’s operations at Shahid Beheshti terminal in Chabahar port and had been renewed annually. The Ministry of External Affairs has allocated Rs 100 crore for the project in 2024-25. US sanctions on Iran over a suspicion of developing a nuclear programme had slowed down the development of the port, the report added.
India started the development back in 2003, during Iranian President Muhammad Khatami’s visit to India. India promised to invest $100 million towards the development of Chabahar Port in 2013.
