The United States State Department has issued a warning to India regarding potential sanctions following its recent 10-year agreement with Iran to manage operations at the Chabahar port.
During a press briefing in Washington, State Department Spokesperson Vedant Patel emphasized the ongoing sanctions on Iran by the US and the potential risks involved in engaging in business deals with Iran. Patel stated that any entity, including Indian firms, considering business ventures with Iran should be aware of these risks.
The State Department’s statement follows the signing of a 10-year contract between India and Iran to develop and operate the Chabahar port, a strategic move for India to expand trade in west and central Asia. As per Iran’s Ministry of Roads and Urban Development, the agreement grants India access to the port for a decade. India Ports Global Limited (IPGL) is set to invest $370 million in equipping the port and enhancing its transport infrastructure.
The contract signing ceremony took place in Chabahar, attended by Iran’s urban development minister Mehrdad Bazrpash and India’s ports and shipping minister Sarbananda Sonowal. The port’s development was initially agreed upon in 2016 between Prime Minister Narendra Modi and former Iranian president Hassan Rouhani. Despite the US reimposing sanctions in 2018, progress on the port’s development was delayed.
Bazrpash highlighted Chabahar’s potential as a key transit point for regional development, expressing Iran’s confidence in India’s involvement. Minister Sonowal echoed this sentiment, emphasizing the partnership between the two countries in developing the port for mutual access to regional markets.
This long-term contract signifies the enduring partnership between India and Iran, with efforts to expedite the project dating back to 2019, prior to the COVID-19 pandemic. Chabahar port, situated on the Indian Ocean near the Pakistan border, holds significant strategic importance for both countries.
