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US warns of sanctions after India signs Chabahar Port deal with Iran
US State Department Deputy Spokesperson Vedant Patel acknowledged awareness of the agreement between India and Iran at a media briefing.
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US State Department Principal Deputy Spokesperson Vedant Patel during a press briefing. / Screengrab YouTube/@StateDept
Hours after India signed a long-term contract for operations at Iran's Chabahar Port on May.13, US State Department Deputy Spokesperson Vedant Patel said that anyone considering business deals with Tehran needs to be aware of the "potential risk of sanctions”.
"We're aware of these reports that Iran and India have signed a deal concerning the Chabahar port,” Patel said in a media briefing. “I will 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. I will just say, as it relates to the United States, US sanctions on Iran remain in place and we will continue to enforce them.”
Indian Union Minister Sarbananda Sonowal attended the ceremony for the signing of the pact between Indian Ports Global Limited and the Port and Maritime Organisation of Iran. "With the signature of this contract, we have laid the foundations of India's long-term involvement at Chabahar," Sonowal said on the occasion.
While IPGL has committed to invest $120 million, a debt of $250 million is also expected to be raised for the project. The move is expected to boost trade between India, Iran and Afghanistan. Specifically for the 2024-25 period, a total of Rs 100 crore has been allocated by the Indian External Affairs Ministry.
"This 10 years long term lease agreement further strengthens the bilateral ties between the two countries while bolstering confidence and boosting trust of trading communities from the region," an Indian MEA statement said.
When asked by reporters if there was any exemption to the trade sanctions, US' Patel replied "No."
The Chabahar Port is expected to serve as a hub for the International North-South Transport Corridor — a 7,200-km-long multimode transport project for moving freight between India, Iran, Afghanistan, Azerbaijan, Armenia, Central Asia, Russia and Europe.
Discussions to develop the port were first held during the then Iran President Muhammad Khatami's 2003 visit to India. In 2013, India invested $100 million for its development. An MoU was signed in 2015 for further development of the port before Prime Minister Narendra Modi's trip to Iran in 2016.
Gujarat's Kandla port is located at a distance of 550 nautical miles from Chabahar Port, closest in India. Mumbai Port is 786 nautical miles away from Chabahar.
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