India Seeks Exemption from US Sanctions for Iranian Chabahar Port

Iran, of the major steel producer in MENA is currently facing sanctions from USA, owing to which many foreign companies working in Iran quit their operation. US Sanctions has also affected many ongoing projects of Iran which includes Chabahar port of Iran, on which India is also cooperating with Iran.

India, Iran and Afghanistan had signed an agreement which entailed establishment of a transit and transport corridor among the three countries using Chabahar Port as one of the regional hubs. Amidst sanctions, the ongoing project of Chabahar port is facing a lot of concern from India and Iran.

India wants Chabahar port activities exempted from sanctions. High-level Iranian, Indian and Afghan officials are finding ways to carry on the work even if no exemptions are granted. That may include making payments through a mechanism European countries are trying to devise to continue doing business with Iran despite US sanctions.

As per an Indian official, "We have shared our concerns with the U.S., If India is to play a better role in economic empowerment of Afghanistan, Chabahar will be an important element."

In May 2016, India, Iran and Afghanistan had signed a pact which entailed establishment of a transit and transport corridor among the three countries using Chabahar Port as one of the regional hubs. The trilateral transit agreement signed by India, Iran and Afghanistan allows Indian goods to reach Afghanistan through Iran.

It links ports in the western coast of India to the Chabahar port and covers the road and rail links between Chabahar and the Afghan border. The bilateral agreement between India and Iran gives India the right to develop two berths of the Chabahar port as agreed in 2015 and allows them to be operated for 10 years by India Ports Global.

Inputs from Mehr News