US Sanctions and the Chabahar Port
The US government has decided to revoke the 2018 sanctions waiver concerning the strategic Iranian port of Chabahar, which impacts India due to its involvement in the port's development.
US Government's Decision
- The US Department of State, consistent with President Trump's maximum pressure policy, has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA).
- This revocation will be effective from September 29, 2025.
- Post-revocation, individuals or entities operating the Chabahar Port may face sanctions under IFCA.
Impact on India
- India is involved in the development of a terminal at Chabahar Port on the Gulf of Oman.
- In May 2024, India signed a 10-year contract to manage the port, which is crucial for expanding trade with Central Asia.
- The port was initially proposed by New Delhi in 2003 to facilitate Indian goods reaching landlocked Afghanistan and Central Asia via the International North-South Transport Corridor, bypassing Pakistan.
Historical Usage and Agreements
- US sanctions over Iran's suspected nuclear program had earlier impeded port development.
- The long-term agreement was signed by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, updating a 2016 pact.
- In 2023, Chabahar port was used by India to send 20,000 tonnes of wheat aid to Afghanistan. In 2021, it was used to supply environmentally friendly pesticides to Iran.