US has granted India a six-month exemption from sanctions on Chabahar port, confirms MEA
“The US has granted India a six-month exemption from American sanctions on Chabahar port; we are continuing talks with the US to sign a trade agreement,” MEA spokesperson Randhir Jaiswal said.
ET had reported earlier on Thursday that India had extended sanctions exemption for Chabahar Port, key to New Delhi’s access to Afghanistan, Central Asia and even Eastern Russia, until early next year.
The US exemption from sanctions expired on Tuesday and India managed to get the extension after intense diplomatic talks with Washington, ET reported. New Delhi has argued that the continued operation of the port is vital to the effectiveness of its regional connectivity strategy, especially as an alternative trade corridor bypassing Pakistan.
ET was the first to report that the matter was being considered and India was trying to renew the exemption before the October 28 deadline. Washington had initially set September 29 as the cancellation date of the sanctions exemption, which has been in effect since 2018.
Chabahar Port: India’s strategic gateway to Iran
On May 13, 2024, India signed a 10-year agreement with Iran for the operation of Chabahar Port. The long-term contract signed between Indian Ports Global Limited (IPGL) and the Iran Port and Maritime Organization signaled India’s commitment to develop the facility despite US restrictions on Iran. Chabahar Port is a key component of India’s broader regional trade and humanitarian agenda. It was used to deliver supplies and aid to Afghanistan, including ambulances gifted by India during the Afghan foreign minister’s visit to New Delhi earlier this month. The Taliban regime has also expressed interest in using the port for commercial connections. Plans to connect Chabahar to the International North-South Transport Corridor (INSTC) and Central Asian states are also underway. According to sources quoted by ET, Uzbekistan, one of the two countries in the world with twice the landlocked area, showed special interest in the port as it was looking for alternatives to China’s Belt and Road network.
Russia is also reportedly exploring the use of Chabahar through Kazakhstan and Uzbekistan to expand trade routes to India and other parts of Asia, adding another layer of strategic importance to the project.
