In the wake of India’s recent agreement to operate Iran’s Chabahar Port for the next ten years, US warns India sternly. The cautionary statement emphasizes the potential risks of engaging in business dealings with Iran, urging all entities to exercise caution.
US warns India on Iran Deal
Vedant Patel, the principal deputy spokesperson for the US State Department, addressed the media shortly after news of the Chabahar Port deal emerged. While acknowledging India’s foreign policy objectives and its bilateral relationship with Iran, Patel underscored the US’s commitment to maintaining sanctions against Iran.
Acknowledgment of India-Iran Agreement
Patel confirmed awareness of the reported deal between India and Iran concerning the Chabahar Port. However, he reiterated the US’s stance on Iran sanctions, emphasizing the need for entities contemplating business ventures with Iran to be fully aware of the associated risks.
Importance of Sanctions Compliance
The US warns India that sanctions on Iran remain in force and will be rigorously enforced. Patel cautioned any entity considering business deals with Iran to carefully assess the potential risks involved, particularly regarding the possibility of facing sanctions.
Investment and Operation Agreement Details
The long-term bilateral contract signed between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organisation (PMO) outlines the operation of the Shahid-Behesti port within the Chabahar Port Development Project for the next decade. IPGL has committed significant investment in equipping and operating the port, with additional financial support from India.
Investment and Infrastructure Support
IPGL’s investment of approximately USD 120 million in port equipment is supplemented by India’s offer of a credit line worth USD 250 million. This financial support is earmarked for mutually identified projects aimed at enhancing Chabahar-related infrastructure.
Strengthening Bilateral Ties
The ten-year lease agreement further solidifies the bilateral relationship between India and Iran. It instills confidence and fosters trust among trading communities in the region, paving the way for enhanced economic cooperation.
Significance of Chabahar Port
The Chabahar Port, a flagship project between India and Iran, serves as a vital transit hub for trade with Afghanistan and landlocked Central Asian nations. India’s substantial investments in the port’s infrastructure underscore its commitment to facilitating trade routes for Indian goods destined for Afghanistan and Central Asia.
