US Revokes Sanctions Waiver for Iran’s Chabahar Port, India May Face Setback
WASHINGTON/TEHRAN: The United States has announced the revocation of the sanctions waiver for Iran’s Chabahar Port, a key project where India is developing a terminal to boost trade links with Central Asia. The waiver will officially end on September 29, 2025.
Waiver Withdrawn After Seven Years
The exemption, granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), was originally designed to support Afghanistan’s reconstruction and regional economic development.
In a statement, the US Department of State said:
“Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.”
The move is part of Washington’s maximum-pressure policy aimed at further isolating Tehran over its suspected nuclear activities.
India’s Investment at Risk
India has invested heavily in the port, viewing it as a strategic gateway to Central Asia that bypasses Pakistan. On May 13, 2024, Indian Ports Global Limited (IPGL) signed a long-term agreement with Iran’s Port & Maritime Organisation, covering operations at the Shahid Beheshti terminal.
This deal replaced the initial 2016 pact, which until then had been renewed annually. The new framework was expected to accelerate port development and strengthen India-Iran trade cooperation.
Sanctions Slow Progress
Despite the agreements, progress at Chabahar has been slow due to repeated US sanctions on Iran. Washington accuses Tehran of pursuing a nuclear weapons programme, a charge Iran denies.
Analysts warn that the withdrawal of the waiver could significantly impact India’s plans, especially as New Delhi had positioned Chabahar as a rival to China’s Belt and Road projects in the region.