India is planning to import coking coal and other natural resources from Russia and Central Asian countries through the strategic Chabahar port in Iran. This move, expected to begin later in FY25, aims to utilize a more economical route compared to the current Red Sea route. The development follows India’s recent investment in Chabahar port and establishes India’s presence on a strategic route connecting the Indian subcontinent to Europe.
India’s External Affairs Minister S. Jaishankar emphasized the regional benefits of the Chabahar Port project, despite warnings of potential sanctions from the US. Jaishankar expressed confidence in communicating the project’s broader relevance to all parties involved.
The United States has warned of potential sanctions against any entities considering business deals with Iran following India’s signing of a long-term contract for the development of Shahid Beheshti Port Terminal in Chabahar. The move marks a shift in US policy, as India had previously been exempted from certain sanctions for the development of the port. The deal is seen as a key part of India’s efforts to expand its trade with Afghanistan and Central Asia. However, the US maintains that sanctions on Iran remain in place and will continue to be enforced.
The United States has cautioned countries considering business agreements with Iran, emphasizing the potential threat of sanctions. This warning comes after India inked a 10-year pact to manage Iran’s Chabahar Port. The US State Department emphasized that entities engaging in Iranian transactions should be mindful of possible sanctions. India’s decision regarding the Chabahar port will be addressed by its government, according to the US spokesperson. Despite India’s investment in the Chabahar project, US sanctions against Iran remain in effect and will continue to be enforced.
After protracted negotiations, India and Iran are set to sign a long-term contract for the development of Chabahar Port. The agreement will cover a period of 10 years and aims to accelerate the development of the strategically important port. The Chabahar Port, located in southeastern Iran, provides India access to markets in Afghanistan and Central Asia. It also serves as a strategic gateway for the International North-South Transport Corridor. The contract signing is expected to take place after India’s general election in the second half of 2024.
