The US has implemented sanctions on India’s Chabahar port project in Iran, officially starting on Monday. This move ends a previous exemption granted by Washington and puts pressure on New Delhi as it navigates regional strategies alongside American penalties. The decision aligns with President Donald Trump’s “maximum pressure” campaign against Tehran, as reported by AFP. State Department spokesperson Tommy Pigott stated that the exemption, initially provided in 2018 to support Afghanistan’s reconstruction, is no longer valid in light of the country now being under Taliban control.
The revocation of the exemption, according to Pigott, is in line with President Trump’s strategy to isolate the Iranian regime. These sanctions coincide with broader UN measures against Iran being reinstated, highlighting a unified global stance against Tehran’s nuclear program.
In 2018, Chabahar was pivotal for India’s access to Afghanistan, offering a route that bypassed Pakistan and countered China’s presence at Gwadar port in Pakistan. However, recent geopolitical shifts, including the Taliban’s control in 2021, have diminished Chabahar’s importance as a link to Kabul. Furthermore, Trump’s administration has been less accommodating towards India, imposing tariffs and expressing concerns over its relations with Russia, as noted by AFP.
The sanctions require Indian entities, such as state-run India Ports Global Limited, to exit Chabahar within 45 days to avoid asset freezes and exclusion from the US financial system. Joshua Kretman, a former US sanctions official now at Dentons law firm, warned of potential ramifications for globally operating sanctioned entities due to restricted access to major banks and dollar clearing.
Amidst these developments, India’s foreign ministry spokesperson Randhir Jaiswal stated that New Delhi is evaluating the implications of the US decision. India’s significant investment in Chabahar, evidenced by a recent $370 million 10-year contract, underscores its role in balancing China’s influence at Gwadar. Experts suggest that India will proceed cautiously, leveraging its ties with Iran strategically in international relations and potentially seeking to reduce dependence on US-led financial systems in collaboration with other non-Western powers.