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India Examining Implications of US Move to Revoke Chabahar Sanction Waiver

© Photo : Social MediaTalks held between India and Iran to establish cooperation framework on Chabahar Port
Talks held between India and Iran to establish cooperation framework on Chabahar Port - Sputnik India, 1920, 19.09.2025
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Indian officials described Chabahar Port and the International North South Transport Corridor (INSTC) as a "long-term strategic projects", adding that they are yet to examine the finer details of the latest US order.
New Delhi has said that it is studying the possible implications of the US decision to revoke the 2018-era sanctions' waiver on the Iranian port of Chabahar, which is being developed and operated by state-backed India Port Global Limited (IPGL) under a 10-year contract inked last May.
"We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications for India," Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal told a briefing in New Delhi on Friday.
The comments from New Delhi come three days after a US State Department said in a statement that Washington was revoking sanctions waiver on the Iranian port with effect from 29 September, as part of its 'Maximum Pressure' policy against Iran.
"The Secretary of State 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 State Department said.
Last May, a day after IPGL and Iran's Ports and Maritime Organization (PMO) inked a long-term Chabahar port deal to replace a 2016-era pact, the then Biden administration had warned of "potential risk of sanctions".
In February this year, weeks after coming to power, US President Donald Trump signed an Executive Order (EO) asking the Secretary of State to modify or rescind the sanctions waiver on Chabahar. The order came just ahead of Prime Minister Narendra Modi's visit to Washington, where he was hosted by President Trump.
In 2016, Prime Minister Narendra Modi committed $500 million to develop Chabahar port's Shahid Beheshti terminal during a visit to Tehran.
Under the India-Iran long-term deal signed last year, IPGL committed $120 million to equip the port terminal, strategically located at the Gulf of Oman, and seen as a counterweight to the Gwadar Port in Pakistan.
The Indian leadership has been using the Chabahar Port to provide humanitarian assistance to Afghanistan as well as bolster connectivity to Central Asia and beyond. Currently, India is also working with other regional partners to link the Chabahar port to the International North South Transport Corridor (INSTC). New Delhi has used the port to transport over 2.5 million tonnes of wheat to Afghanistan, therefore bypassing the land route through Pakistan.
Iranian workers transfer goods from a cargo container to trucks at the Kalantari port in city of Chabahar on May 12, 2015. - Sputnik India, 1920, 16.06.2024
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