The United States has reversed its decision to exempt Iran’s Chabahar port from sanctions, a move that could significantly impact India’s efforts to develop the port as a key trade route to Central Asia.
According to a report from The News, the sanctions waiver, originally granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), was intended to support Afghanistan’s reconstruction and economic development. The U.S. State Department announced that this exemption will officially end after September 29.
The revocation is a component of Washington’s “maximum-pressure” policy, which is designed to isolate Tehran. The State Department’s statement warned that “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.”
This decision is likely to affect India, which is currently developing a terminal at the port. On May 13, 2024, Indian Ports Global Limited signed a long-term agreement with Iran’s Port & Maritime Organisation, replacing a previous 2016 agreement that was renewed on an annual basis. The new pact solidified India’s operational role at the Shahid Beheshti terminal. The report noted that earlier U.S. sanctions on Iran, imposed over suspicions of a nuclear program, had already slowed the port’s development.
