Business & Economy

US Threatens India With Sanctions Over Iran Business Deal

© Photo : Social Media10 year agreement between India and Iran for operation of Chabahar port
10 year agreement between India and Iran for operation of Chabahar port - Sputnik India, 1920, 14.05.2024
Indian Ports and Shipping Minister Sarbanand Sonwal on Monday travelled to Iran to sign a long-term contract to equip and operationalise the cargo and container terminals at Chabahar Port.
The United States has warned of a "potential risk of sanctions" against India, a day after New Delhi and Tehran signed a 10-year contract for the development of Chabahar Port.
The contract signed between New Delhi-backed India Port Global Limited (IPGL) and Ports and Maritime Organization (PMO) of Iran on Monday replaces a 2016-era pact, which had to be renewed every year. The new pact, which was being negotiated for the last three years, has a renewal clause every 10 years.
Under the terms of the pact, IPGL would invest nearly $120 million to equip the Shahid Beheshti Terminal of the Chabahar Port.
External Affairs Minister (EAM) S Jaishankar told Iranian Foreign Minister Hossein Amirabdollahian in a letter that New Delhi would offer a "credit window" of $250 million for the development of the port on the Gulf of Oman.
The letter was handed over to Amirabdollahian by Indian Ports, Shipping and Waterways Minister Sarbanand Sonwal.

Sanctions Threat from the US

Hours after the signing of the much awaited contract, a US State Department spokesperson told a regular briefing that the US would continue to enforce sanctions against entities engaging in dealings with Iran.

"I will let the Government of India speak to its own foreign policy goals vis-à-vis the Chabahar port as well as its own bilateral relationship with Iran. I will just say, as it relates to the United States, U.S. sanctions on Iran remain in place and we’ll continue to enforce them,” State Department’s Principal Deputy Spokesperson Vedant Patel said.

“Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions,” Patel said, ruling out any exemptions for India.

According to a report by US Congressional Research Service (CRS), the extensive US sanctions against Iran target its energy, banking, shipping, construction, mining, manufacturing and defence sectors.
However, humanitarian supplies through the Chabahar Port have been exempt from US sanctions. India has used the Chabahar Port to transport around 2.5 million tonnes of wheat to Afghanistan till date, in order to help Kabul overcome its food shortages.
A cargo ship is docked during the inauguration ceremony of the newly built extension in the port of Chabahar on the Gulf of Oman, southeastern Iran, near the Pakistani border, Sunday, Dec. 3, 2017. - Sputnik India, 1920, 26.04.2024
Political Affairs
US Sanctions Against Iran Continue to Irritate India
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