Hours after India signed a deal to operate the Chabahar Port in Iran for ten years, the United States of America reiterated that anyone considering business deals with Iran needs to be aware of the potential risk of sanctions. This comes day after the US announced sanctions on Iran targeting its unmanned aerial vehicle (UAV) production after its attack on Israel.
“We are aware of these reports that Iran and India have signed a deal connecting Chabahar Port. I will let the government of India speak to its own foreign policy goals with respect to the Chabahar Port as well as its own bilateral relationship with Iran. Vedant Patel, deputy spokesperson of the US State Department while responding to a question of the agreement between India and Iran.
“I will just say, as it relates to the United States, US Sanctions on Iran remain in place and we will continue to enforce them, he added. Further, on being asked if that would mean including sanctions against Indian firms, Patel said, “Broadly you have heard us say this in various number of instances that any entity, anyone considering business deals with Iran, they need to be aware of the potential risks they are opening themselves up to and potential risk of violence.”
The contract between Iran and India was signed in Tehran by India Ports Global Limited and the Ports and Maritime Organisation in the presence of Ports, Shipping Waterways Minister Sarbananda Sonowal according to the series of posts on X, by the Indian Embassy in Iran. This is the first time; India will take over the management of an overseas port. In April 2024, the US Imposed sanctions on suppliers to Pakistani ballistic missile programme, including three Chinese companies.
The sanctions were made because these were entities that were proliferators of weapons of mass destruction and the means of the delivery These were entities based in the Peoples Republic of China (PRC) in Belarus and that we have witnessed to have supplied equipment and other applicable items to Pakistan’s ballistic missile programme, Patel had them said.
A couple of days later, the US slapped sanctions on over a dozen companies, individuals and vessels including three from India and facilitating illicit trade and UAV transfers on behalf of the Iranian military. The US Department of Treasury alleged that these companies’ individuals and vessels have played a central role in facilitating and financing the clandestine sale of Iranian Unmanned Aerial Vehicles (UAVs) to Russia’s war in Ukraine.
On May 13, 2024, the External Affairs Ministry S Jaishankar said the Chabahar Port will definitely see more investments and connectivity linkages coming out of it after India and Iran signed a long-term contract of its Shahid Beheshti terminals. He also said the port will help connect India and Central Asia.
“Right now, the port has not grown. If you don’t have a long-term agreement, it is not difficult to invest in a port. So, the very clear expectation is that of the Chabahar Port that we are involved in will Definity see more connectivity linkages coming out of that port, Jaishankar said. We believe today that connectivity is a big issue in that part. Chabahar Port will connect us with Central Asia,” he added.
