US issues warning after India’s Chabahar Port deal: ‘Potential risk of sanctions’ for business deals with Iran

The US has cautioned all nations contemplating business engagements with Iran about the ‘potential risk of sanctions’ in a warning issued shortly after India finalised a contract to manage the Chabahar Port in Iran.

Written By Fareha Naaz
First Published14 May 2024
US State Department Deputy Spokesperson Vedant Patel said  on Monday that US sanctions on Iran remain in place and it will continue to enforce them.
US State Department Deputy Spokesperson Vedant Patel said on Monday that US sanctions on Iran remain in place and it will continue to enforce them.(PTI)

The United States has issued a warning to nations considering business  deals with Iran that run the "potential risk of sanctions." This development comes hours after India signed an agreement to operate the Chabahar Port in Iran for 10 years.

US State Department Deputy Spokesperson Vedant Patel on Monday, May 13, during his daily news conference said, “Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk they are opening themselves up to, potential risk of sanctions,” while claiming that the country is aware of Iran-India deal concerning the Chabahar port.

Also read: India, Iran sign long-term contract for Chabahar Port after years of talks

However, the US spokesperson noted that it would let the Indian government speak on its foreign policy goals as he stated, "I will let the government of India speak to its own foreign policy goals vis-à-vis the Chabahar port as well as its own bilateral relationship with Iran,”ANI reported.

Also read: Iran's lawmaker makes big revelation: ‘We have obtained nuclear weapons, but…’ Details here

In response to a question over India’s deal with Iran on the strategic Chabahar port, Vedant Patel said that US sanctions on Iran remain in place and the US will continue to enforce them.

The Indian Ports Global Limited (IPGL) of India and the Port & Maritime Organisation (PMO) of Iran on May 13 signed the Long-Term Bilateral Contract on Chabahar Port operation.

Following this deal, IPGL is entitled to operate Shahid-Behesti port in the Chabahar Port Development Project for 10 years.

IPGL is set to invest around USD 120 million in equipping the port during this 10-year long-term lease agreement. India also offered an in-credit window of USD 250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

Also read: Iran adviser hints at nuclear doctrine shift and builds bomb amid Israel threats

Why is Chabahar Port important for India?

The Chabahar Port is expected to serve as a crucial transit hub for trade with Afghanistan and other landlocked nations of Central Asia. India has played a significant role in the development and operation of the Chabahar Port.

(With agency inputs)

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