Investigating the Consequences": MEA Comments on the US Abrogating Chabahar Port Project Waiver
The United States has announced the revocation of its sanctions waiver over the Iranian port of Chabahar, a move aimed at targeting Iran's financial network for its military and to put "maximum pressure" on the Islamic State. The revocation, effective from September 29, could significantly impact India's strategic investments in the port.
The Chabahar Port, located near the China-controlled Gwadar Port, has two main terminals, Shahid Kalantari and Shahid Beheshti, each with five berths for significant cargo handling. In 2024, India signed a 10-year agreement with Iran for the operation of the Shahid Beheshti terminal, a key component of Chabahar's port infrastructure. Under the agreement, India has operational control over this terminal.
The Chabahar Port agreement is between India and Iran, not involving any other countries. The operation of the Chabahar Port is granted to Indian Ports Global Ltd. (IPGL), not any other Indian entity. However, the funds generated from the sale of Iranian oil facilitated by these networks have benefited Iran's Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defence and Armed Forces Logistics (MODAFL). These funds are used to support regional terrorist proxies and advance weapons systems that pose a direct threat to US forces and allies.
The US Department of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act for Afghanistan reconstruction and economic development. As a result, operators of the Chabahar Port will face US sanctions starting September 29. The name of the person controlling the operation of the Chabahar Port in India after India signed a 10-year contract with Iran in 2024 is not publicly specified.
The Ministry of External Affairs in India is examining the implications of the United States' decision to revoke the sanctions waiver for the Chabahar Port project in Iran. The Chabahar Port is strategically important due to its logistical advantages, and the loss of the sanctions waiver could potentially disrupt India's trade routes to Afghanistan, Central Asia, and the resource-rich Central Asian republics.
The US move comes in response to Iran's destabilizing activities. The US has designated an international illicit financial network, along with several individuals and entities based in Hong Kong and the United Arab Emirates. The networks have facilitated the sale of Iranian oil, with proceeds benefiting Iran's military.
This development marks a significant shift in the geopolitical landscape of the region, with potential implications for India's strategic interests. The Indian government is expected to engage with the US and other stakeholders to mitigate the impact of this decision on India's trade and strategic interests.
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