The United States has granted India a six-month exemption from sanctions for operations through Iran’s Chabahar port along the Gulf of Oman, the Ministry of External Affairs (MEA) said on Thursday, confirming what is a major relief for New Delhi’s regional connectivity plans.
“US has granted India six months exemption from American sanctions on Chabahar port; we remain engaged with US to conclude a trade deal,” said MEA spokesperson Randhir Jaiswal.
ET had reported earlier on Thursday that India had secured an extension of the sanctions waiver until the early part of next year for the Chabahar Port, which is key to New Delhi’s outreach to Afghanistan, Central Asia and even eastern Russia.
The US sanctions waiver had expired on Tuesday, and India managed to obtain the extension after intense diplomatic engagement with Washington, ET reported. New Delhi argued that continued operation of the port was vital for the effectiveness of its regional connectivity strategy, especially as an alternative trade corridor bypassing Pakistan.
ET was the first to report that the matter was under consideration and that India was seeking to renew the waiver before the earlier deadline of October 28. Washington had initially set September 29 as the date for revoking the sanctions exemption, which had been in place since 2018.
The Chabahar Port is a crucial component of India’s broader regional trade and humanitarian agenda. It has been used for delivering supplies and aid to Afghanistan, including ambulances gifted by India during the Afghan foreign minister’s visit to New Delhi earlier this month. The Taliban regime, too, has expressed interest in utilising the port for trade connectivity.
Plans are also underway to link Chabahar with the International North-South Transport Corridor (INSTC) and Central Asian states. According to sources cited by ET, Uzbekistan — one of only two doubly landlocked countries in the world — has shown particular interest in the port as it seeks alternatives to China’s Belt and Road network.
Russia, too, is reportedly exploring the use of Chabahar via Kazakhstan and Uzbekistan to expand trade routes to India and other parts of Asia, adding another layer of strategic importance to the project.
“US has granted India six months exemption from American sanctions on Chabahar port; we remain engaged with US to conclude a trade deal,” said MEA spokesperson Randhir Jaiswal.
ET had reported earlier on Thursday that India had secured an extension of the sanctions waiver until the early part of next year for the Chabahar Port, which is key to New Delhi’s outreach to Afghanistan, Central Asia and even eastern Russia.
The US sanctions waiver had expired on Tuesday, and India managed to obtain the extension after intense diplomatic engagement with Washington, ET reported. New Delhi argued that continued operation of the port was vital for the effectiveness of its regional connectivity strategy, especially as an alternative trade corridor bypassing Pakistan.
ET was the first to report that the matter was under consideration and that India was seeking to renew the waiver before the earlier deadline of October 28. Washington had initially set September 29 as the date for revoking the sanctions exemption, which had been in place since 2018.
Chabahar Port: India's strategic gateway in Iran
On May 13, 2024, India signed a 10-year agreement with Iran to operate the Chabahar Port. The long-term contract was concluded between Indian Ports Global Limited (IPGL) and Iran’s Port and Maritime Organisation, signalling India’s commitment to develop the facility despite US restrictions on Iran.The Chabahar Port is a crucial component of India’s broader regional trade and humanitarian agenda. It has been used for delivering supplies and aid to Afghanistan, including ambulances gifted by India during the Afghan foreign minister’s visit to New Delhi earlier this month. The Taliban regime, too, has expressed interest in utilising the port for trade connectivity.
Plans are also underway to link Chabahar with the International North-South Transport Corridor (INSTC) and Central Asian states. According to sources cited by ET, Uzbekistan — one of only two doubly landlocked countries in the world — has shown particular interest in the port as it seeks alternatives to China’s Belt and Road network.
Russia, too, is reportedly exploring the use of Chabahar via Kazakhstan and Uzbekistan to expand trade routes to India and other parts of Asia, adding another layer of strategic importance to the project.
