US Warns of Possible Sanctions Over India-Iran Chabahar Port Deal

GUWAHATI: The US has cautioned that countries could face sanctions if they engage in business with Iran. This warning came shortly after India signed a 10-year deal to manage a port in Iran.

India had initially agreed to develop the Chabahar port, located near Iran's border with Pakistan, in 2016. On Monday, India signed a new agreement with Iran to continue the port's development.

India's shipping minister described this event as a significant moment in the relationship between India and Iran.

However, the US might not approve of this move, as it has imposed over 600 sanctions on entities related to Iran in the last three years.

During a press briefing on Tuesday, Vedant Patel, the State Department's Deputy Spokesperson, commented on the deal when asked, stating that US sanctions on Iran remain in effect and will continue to be enforced.

He cautioned that any entity or individual considering business with Iran should understand the potential risks and the possibility of facing sanctions.

India has not yet responded to this statement.

India began managing the port at the end of 2018. This port provided a new route for Indian goods to reach Afghanistan and Central Asia, bypassing the land route through Pakistan. India and Pakistan have a strained relationship.

India to Afghanistan through the Chabahar port so far.

On Monday, India's shipping ministry announced that the Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organization signed a long-term agreement for the development of the port.

According to Iran's Minister of Roads and Urban Development, Mehrdad Bazrpash, IPGL will invest approximately $120 million, with an additional $250 million in financing, making the total contract value $370 million.

India's Foreign Minister, S Jaishankar, stated that the deal "will pave the way for larger investments to be made in the port".

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