India secures six-month US sanctions waiver for Iran's Chabahar Port

Last month, the US revoked the 2018 sanctions waiver for Iran's Chabahar Port, saying the move aligns with President Trump's 'maximum pressure policy' to isolate Tehran

The Ministry of External Affairs (MEA) on Thursday announced that India has been granted a six-month exemption from US sanctions on Iran’s Chabahar Port. The port holds strategic importance as it provides India with direct access to Afghanistan and Central Asia, as well as eastern Russia, bypassing Pakistan.

 

The exemption comes as a relief for India, which is developing a terminal at the Chabahar Port on the Gulf of Oman. Last year, New Delhi signed a 10-year agreement to operate the port, a move aimed at boosting regional trade and connectivity through the International North-South Transport Corridor (INSTC).

 

US revokes 2018 sanctions waiver

 

Last month, the US government revoked the sanctions waiver that had been in place since 2018 for the Iranian port. The US Department of State had said that the move was consistent with President Donald Trump’s “maximum pressure policy" aimed at isolating the Iranian regime.

 

 

The statement added that under the Iran Freedom and Counter-Proliferation Act (IFCA), once the revocation is effective, "persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions".

 

Following Washington’s decision last month to withdraw the waiver, India said it was assessing the possible impact.

 

MEA spokesperson Randhir Jaiswal said in a press briefing, “We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications for India.”

 

India’s strategic and humanitarian use of Chabahar

 

Chabahar has long been a crucial part of India’s regional connectivity and humanitarian initiatives. In 2023, India used the port to send 20,000 tonnes of wheat as aid to Afghanistan. Similarly, in 2021, it facilitated the shipment of eco-friendly pesticides to Iran.

 

The project, first proposed in 2003, has been seen as a cornerstone of India’s strategy to improve trade links with Afghanistan and Central Asia, while reducing dependence on routes passing through Pakistan.

 

(With agency inputs)