News Brief
US Warns Indian Firms Of Sanctions After India And Iran Ink 10-Year Deal For Strategic Chabahar Port
US President Joe Biden (Representative Image)
The United States on Monday (13 May) said that Indian companies will risk US sanctions over any investments in Iran after India signed a 10-year deal to operate and develop strategic Chabahar port.
"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-à-vis the Chabahar port as well as its own bilateral relationship with Iran," US State Department spokesperson Vedant Patel said in a press conference.
"I will just say, as it relates to the United States, U.S. sanctions on Iran remain in place and we’ll continue to enforce them," he added.
When asked about if Indian firms investing in Iran could also be sanctioned, Patel said, "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".
On Monday, a long-term agreement to develop the Chabahar port was signed by Indian Ports Global Limited and the Port and Maritime Organisation of Iran, an official statement has said.
IPGL will invest about $120 million and another $250 million will be raised as debt.
The new pact replaces a 2016 agreement, which covered India's operations at Shahid Beheshti terminal in Chabahar port and was renewed annually.
This is the first time India takes over the management of an overseas port that is expected to boost exponentially trade among India, Iran and Afghanistan.
The Ministry of External Affairs has allocated Rs 100 crore for the Chabahar Port for 2024-25.
"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," the statement added.
