The United States issued a warning about the “potential risk of sanctions” for companies doing business with Tehran after India signed a 10-year arrangement to run Iran’s Chabahar Port. Principal Deputy Spokesperson for the US State Department Vedant Patel accepted the agreement but deferred to the Indian government on matters of foreign policy.
Patel stated in a press briefing, “We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port. I would let the government of India speak to its own foreign policy goals, vis-a-vis the Chabahar Port as well as its own bilateral relationship with Iran.” He emphasized the continuation of US sanctions on Iran and the intention to enforce them, cautioning any entities contemplating business transactions with Iran about the associated risks.
With the signing of the Long-Term Bilateral Contract on Chabahar Port Operation, Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation (PMO) of Iran were able to enable the port of Shahid-Behesti to operate as part of the Chabahar Port Development Project for ten years. IPGL committed to investing approximately USD 120 million in port infrastructure, while India further extended a USD 250 million credit window for jointly specified projects that would improve Chabahar-related infrastructure. The bilateral relationship between Iran and India is anticipated to grow stronger as a result of this deal, which will also increase confidence among regional trading groups.
Chabahar Port, a flagship project between India and Iran, serves as a crucial transit point for trade with landlocked Afghanistan and Central Asian countries. India’s involvement in the development and operation of Chabahar Port underscores its commitment to facilitating trade routes for Indian goods destined for Afghanistan and Central Asia.