By Mallika Soni,News18
Copyright news18
India said it is studying the implications of the US government’s decision to revoke the sanctions waiver for the Chabahar Port project in Iran- a move that threatens one of New Delhi’s most critical connectivity initiatives in the region. The Ministry of External Affairs (MEA) said, “We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications for India.”
The waiver, granted in 2018, allowed India to develop and operate the Chabahar Port without running afoul of US sanctions on Iran. The port has been central to India’s plans to establish a direct trade and transit route to Afghanistan and Central Asia, bypassing Pakistan.
The Donald Trump administration announced that the waiver will be withdrawn with effect from September 29, as part of Washington’s “maximum pressure” campaign against Tehran over its suspected nuclear programme.
“Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA (Iran Freedom and Counter-Proliferation Act) may expose themselves to sanctions under IFCA,” the US State Department said.
Impact Of US Revocation On India’s Strategic Project
India, through a state-run company, has been developing a terminal at Chabahar, located on Iran’s Gulf of Oman coast. The port has been central to New Delhi’s plans to build a trade and connectivity corridor to Afghanistan and Central Asia, bypassing Pakistan.
The US decision could impact India’s future role in the project. In May 2024, India and Iran signed a 10-year agreement on port operations, with New Delhi offering a $250 million credit window for infrastructure development. The deal underscored India’s long-term commitment to the project, which both countries view as a strategic asset.
Chabahar has also been a lifeline for humanitarian and trade initiatives. In 2023, the port was used to ship 20,000 tonnes of wheat aid to Afghanistan, while in 2021, it facilitated the delivery of environmentally friendly pesticides to Iran.