New Delhi, Sep 18 (PTI) The decision of the US government to revoke the 2018 sanctions waiver with regard to the strategic Iranian port of Chabahar will have implications for India, which is engaged in the development of a terminal at the port.
The US Department of State, in a statement, said that in consistent with President Donald Trump’s maximum pressure policy to isolate the Iranian regime, it has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025.
"Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA," the statement said.
The US State Department said the United States is countering Iran’s destabilising activities by designating an international illicit financial network, along with several individuals and entities based in Hong Kong and the United Arab Emirates.
"These networks have facilitated the sale of Iranian oil, with proceeds benefiting Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defense and Armed Forces Logistics (MODAFL)," the statement said.
The statement said the US remains committed to disrupting illicit funding streams financing Iran’s malign activities.
"As long as Iran devotes its illicit revenues to funding attacks on the United States and our allies, supporting terrorism around the world, and pursuing other destabilising actions, we will continue to use all the tools at our disposal to hold the regime accountable," the US State Department said.
India will be impacted by this decision, as it is involved in the development of a terminal at the Chabahar port on the Gulf of Oman. On May 13, 2024, India signed a 10-year contract to operate the port that will help it expand trade with Central Asia.
This was the first time India would take over the management of an overseas port. New Delhi had proposed to develop Chabahar port way back in 2003 to provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called the International North-South Transport Corridor, bypassing Pakistan.
US sanctions on Iran over its suspected nuclear programme had slowed the development of the port.
The long-term agreement was signed by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran.
It replaces an initial 2016 pact, which covered India's operations at Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis.
In 2023, Chabahar port was used by India to send 20,000 tonnes of wheat aid to Afghanistan. In 2021, the same was used to supply environmentally friendly pesticides to Iran.
The long-term bilateral contract on Chabahar Port Operation was signed between Indian Ports Global Limited (IPGL) of India and the Port & Maritime Organisation (PMO) of Iran, enabling the operation of Shahid-Beheshti in the Chabahar Port Development Project for a period of 10 years.
The Ministry of External Affairs (MEA) had allocated Rs 100 crore for Chabahar Port for 2024-25, underlining India's focus on connectivity projects with Iran.
Chabahar is not only the closest Iranian port to India, but it is also an excellent port from a nautical point of view.
Located in Sistan-Balochistan province on the energy-rich Iran's southern coast, Chabahar port is being developed by India and Iran to boost connectivity and trade ties.
India and Iran have projected the port as a key hub for the INSTC project. The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
India has been developing a part of Chabahar Port, and discussions on the development of the port date back to 2003 during Iranian President Muhammad Khatami's visit to India.
In 2013, India committed to investing USD 100 million towards the development of Chabahar Port.
Earlier, a memorandum of understanding (MoU) for the development of Chabahar Port by India was signed in May 2015. Thereafter, the contract was executed on May 23, 2016, in Tehran (Iran) during the visit of Prime Minister Narendra Modi to Iran.
This report includes content sourced from Press Trust of India (PTI), edited for clarity and context.
