US warns of 'potential risk of sanctions' after India, Iran sign Chabahar port deal (WATCH)

On Monday, India and Iran inked a decade-long contract for the operation of a terminal at the strategically significant Chabahar port in Iran.

Anish Kumar

First Published May 14, 2024, 9:25 AM IST | Last Updated May 14, 2024, 9:42 AM IST

Just hours after India and Iran signed a 10-year agreement on managing the strategic Chabahar Port, the United States on Tuesday issued a warning about the potential risk of sanctions.

"We're aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals vis-a-vis the Chabahar port as well as its own bilateral relationship with Iran," State Department Deputy Spokesperson Vedant Patel told reporters at his daily news conference.

Also read: EXPLAINED: Why India taking over Iran's strategic Chabahar port for 10 years is significant

Recently, the US implemented fresh sanctions on Iran following Iran's targeting of US unmanned aerial vehicle production and its attack on Israel.

"I will just say, as it relates to the United States, US sanctions on Iran remain in place and we'll continue to enforce them," Patel added.

On being asked would sanctions be imposed on Indian firms after it signed deal with Tehran, he said, “Broadly, you've heard us say this in a number of instances, that any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions.”

On Monday, Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, embarked on a special flight to Tehran to witness the signing of a deal between India Ports Global Limited and the Ports and Maritime Organization of Iran. This marks the first instance of India managing a port overseas.

Scripting a new chapter in bilateral partnership

In a post on X, External Affairs Ministry spokesperson Randhir Jaiswal said, "Minister @shipmin_india & @moayush @sarbanandsonwal witnessed the signing of the long-term contract for the operation of the Shahid Beheshti Port in Chabahar, between India Ports Global Ltd. & Ports and Maritime organisation of Iran. The contract will give a boost to regional connectivity & India’s linkages with Afghanistan, Central Asia and Eurasia.”

Sonowal presented a letter from External Affairs Minister S. Jaishankar to Iran’s H. Amirabdolahian, offering an INR credit window equivalent to USD 250 million for Chabahar-related development. He reiterated India’s commitment to collaborating with Iran on the development of the Chabahar Port.

Jaishankar emphasised that the Chabahar port would facilitate improved connectivity between India and Central Asia.

"Right now the port has not grown. If you don't have a long-term agreement, it is difficult to invest in a port. So the very clear expectation is that part of the Chabahar that we are involved in will definitely see more investments, it will see more connectivity linkages coming out of that port," the EAM said.

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