The US State Department said in a statement that starting September 29, persons operating the Chabahar Port and engaging in other related activities will face sanctions under the US Iran Freedom and Counter-Proliferation Act (IFCA). The move comes as a fresh setback to India’s plans to develop Chabahar Port, which is already facing significant delays due to broader US sanctions on Iran.
The ministry of external affairs on Friday reacted to the US revoking the sanctions waiver that allowed India to develop Iran’s Chabahar port, saying that it was “examining its implications” for New Delhi.
"We have seen the US press statement regarding the revocation of the sanctions waiver for Chahbahar Port. We are presently examining its implications for India," MEA spokesperson Randhir Jaiswal told the media.
Chabahar, which sits at the mouth of the Gulf of Oman, is Iran’s first deep-water port that puts the country on the global oceanic trade route map. The port lies to the west of Iran’s border with Pakistan, about as far as Gwadar (a competing port developed by China in Pakistan) that lies to the east of the border.
Chabahar is of strategic importance to both Iran and India. It can potentially help Tehran ward off the effect of Western sanctions, and offers New Delhi an alternative route that bypasses Pakistan, which does not allow India land access for trade with Afghanistan and Central Asia.