S Jaishankar responds to potential US sanctions over Chabahar deal with Iran
Updated: May 15th, 2024
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| Chabahar port |
India on May 13 signed a 10-year contract with Iran to develop and operate the Shahid Beheshti terminal at Chabahar port on Iran’s south-eastern coast.
A few hours after India and Iran signed the agreement, the US said anyone dealing with Iran should be aware of the potential sanctions.
This signals a dramatic shift from the previous exemption of sanctions granted by the Trump administration in 2018 when the then-president rescinded the Iran nuclear deal signed by his predecessor President Barack Obama.
Vedant Patel, the principal deputy spokesperson for the US state department, told media on May 13 that while the agreement was a bilateral matter between India and Iran and that India was free to run its foreign policy the way it wants, “any entity (or) anyone considering business deals with Iran … need to be aware of the potential risks that they’re opening themselves up to the term risk of sanctions”.
Asked if there will be no exemptions, the Spokesperson said, “No.”
S Jaishankar responds to the US’s stance
Batting for the collective benefits to the region, External Affairs Minister S Jaishankar responded to a question raised over the US’ reaction to this deal, urging that people should not take a “narrow view” of it.
Responding further, the EAM stated the US too were eyeing to develop Chabahar and were “appreciative of the fact that it has a larger relevance”.
The Chabahar Port deal
The port contract was signed in Tehran by India Ports Global Ltd (IPGL) and the Ports and Maritime Organisation of Iran in the presence of Union Ports, Shipping and Waterways Minister Sarbananda Sonowal, the Indian Embassy in Iran posted on X.
Under the agreement, government-owned IPGL will invest about $120 m (₹1,001.87 cr) while there will be an additional $250 m (₹2,087.24 cr) in financing, bringing the contract’s value to $370 m (₹3,089.11 cr), Iranian minister of roads and urban development, Mehrdad Bazrpash, told media in Tehran.
Union minister Sonowal said with the signing of the agreement, the two countries have laid the foundations for India’s long-term involvement in Chabahar.
“Chabahar Port’s significance transcends its role as a mere conduit between India and Iran; it serves as a vital trade artery connecting India with Afghanistan and the Central Asian countries,” Sonowal said after the signing of the agreement.
There are plans to link the Chabahar Port with the International North-South Transport Corridor (INSTC) that connects India with Russia via Iran, giving India access to the Central Asian region.
The development also comes at a time when China has been keen to increase its investments in ports and other coastal infrastructure in Iran.
Meanwhile, EAM Jaishankar said in Mumbai that the agreement would provide the pathway for bigger investments and more linkages coming out of the seaport.
(With inputs from a syndicated feed)
