US warns of India‍‍ sanctions over Iran port deal

A day after India and Iran signed a 10-year contract to operate the strategic Iranian port of Chabahar, US State Department deputy spokesperson Vedant Patel has said that any entity considering business deals with Iran need to be aware of the potential risk of sanctions, reports The Indian Express.

When asked if the Chabahar port had an exemption, the spokesperson replied in the negative.

While there was no official word from the Ministry of External Affairs, sources downplayed the comments by saying that the spokesperson was not fully aware of the facts.

Chabahar port had got a waiver from the US sanctions under the US administration led by President Donald Trump. The US and Indian officials will have to discuss on the issue of waiver, what is expected to be extended to the pact as well.

But Patel initially gave a formulaic answer, when he told reporters at his daily news conference on Monday while responding to questions, “We’re aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals vis-a-vis the Chabahar port as well as its bilateral relationship with Iran. I will just say, as it relates to the United States, US sanctions on Iran remain in place and we’ll continue to enforce them.”

“You’ve heard us say this in several instances, that any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions,” Patel said.

But, when pressed whether the port deal has an exemption specifically, he said, “No”.

Chabahar is a deep water port located in the Sistan-Baluchistan province of Iran.  It is the closest Iranian port to India, and is located in the open sea, providing easy and secure access for large cargo ships.

During the visit of  Prime Minister Modi to Iran in May 2016, a Trilateral Agreement to establish the International Transport and Transit Corridor (Chabahar Agreement) was signed by India, Iran and Afghanistan. India is participating in the development of the first phase of the Shahid Beheshti Terminal, Chabahar Port in cooperation with the Government of the Islamic Republic of Iran.

India has so far supplied six Mobile Harbour Cranes (two 140 tonnes and four 100 tonnes capacity) and other equipment worth USD 25 Million.

The Indian company, India Ports Global Limited (IPGL), through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ), took over the operations of the Chabahar Port from December 24, 2018.

Since then, it has handled traffic of more than 90,000 TEUs of Container traffic and more than 8.4 MMT of Bulk and General Cargo. The port has also facilitated the supply of humanitarian assistance, especially during the COVID-19 pandemic. Till date, a total of 2.5 million tonnes of wheat and 2,000 tonnes of pulses have been trans-shipped from India to Afghanistan through Chabahar Port. In 2021, India supplied 40,000 litres of environment friendly pesticide (Malathion) to Iran to fight locust menace through the port.