The United States has ended a special sanctions waiver on Iran’s Chabahar Port—a move that could affect India’s role in developing the key strategic connectivity project.
Earlier, the sanctions exemption had allowed India and other countries to continue work on the port without facing US penalties. But now, that is set to change.
The US Department of State on Thursday said that those linked to operations at the port would be sanctioned under the Iran Freedom and Counter-Proliferation Act.
The sanction is set to take effect on September 29.
Chabahar Port important for India
Chabahar is of strategic importance for India. Though first proposed in 2003, the project never took off due to US and UN sanctions on Tehran over its nuclear programme.
The talks resumed only in 2016, following which a Memorandum of Understanding was signed for the development of the Chabahar Port.
In May 2024, India pledged $120 million and offered a credit facility of $250 million to further develop the terminal it operates in Chabahar’s Shahid Beheshti port.
India wants access to the Iranian port as it provides a trade route to Afghanistan and Central Asia, without relying on Pakistan.
It also connects to the International North-South Transport Corridor, bringing India closer to Europe through Iran, Azerbaijan, and Russia. The port has already been used to send wheat aid and other vital supplies to Afghanistan.
India on the back foot?
The Chahbahar port also helps India to counter China's growing influence in the Arabian Sea. The Iranian port lies just 140km from Pakistan's Gwadar, which is run by Beijing.
The new sanctions on Chahabahar port could affect India’s ability to expand its geopolitical influence in Central Asia.
