Sanctions may be imposed on signing agreements with Tehran’ America enraged by talks on India-Iran Chabahar port. India and Iran on Monday signed a ten-year contract regarding Chabahar port. Hours later, the US warned that anyone considering a trade deal with Tehran should be aware of the risk of possible sanctions. However, US State Department spokesperson Vedanta Patel said that it would let the Indian government speak on its foreign policy goals.
Patel said, I will just say… US sanctions on Iran remain in place and we will continue to enforce them. Any entity considering trade deals with Iran should be aware of the risk that sanctions may impose.
⚡️ India, Iran Pen Long-Term Deal For Chabahar Port – MEA
It was previously reported that the deal is for a period of ten years, and allows for the flow of goods between India, Iran, Afghanistan, and Central Asia.
📹: @India_in_Iran https://t.co/l8RzLvOBxL pic.twitter.com/tUxKgbOuzG
— RT_India (@RT_India_news) May 13, 2024
A bilateral contract was signed between India’s Indian Ports Global Limited (IPGL) and Iran’s Port and Maritime Organization (PMO) for the operation of Chabahar port. This will enable operation of Shahid-Behesti port in Chabahar Development Project for a period of ten years. Over a period of ten years, both sides will take forward their cooperation in Chabahar. IPGL will invest around US$120 million to equip the port.
India has also offered a credit window of $250 million for the development of Chabahar port. Plans are currently underway to integrate the Chabahar port with the International North South Transport Corridor (INSTC), which will ease India’s connectivity with Russia via Iran. This ten-year long-term agreement will strengthen bilateral relations between the two countries. This will also increase trust among the business communities in the region.
India is a major player in Chabahar port development and operation. The project will serve as an important transit port for trade with Afghanistan and Central Asian countries. These are landlocked countries. The Government of India has invested in the port infrastructure and is working on upgrading its facilities.