Jaishankar reacts to US's 'sanction warning' after Chabahar Port deal
A day after the United States warned of a "potential risk of sanctions" following India's 10-year agreement to operate Iran's Chabahar Port, External Affairs Minister S Jaishankar said the project will "benefit the entire region." Speaking at the launch of the Bangla edition of his book "Why Bharat Matters," in Kolkata, West Bengal, Jaishankar urged people not to take a "narrow view" of the project. He also added that the US had previously appreciated the larger relevance of Chabahar.
Why does this story matter?
Hours after India finalized the deal to manage the Chabahar Port, the US issued a warning to all nations considering business deals with Iran. "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," US State Department Deputy Spokesperson Vedant Patel said on Monday (local time). He also added that US sanctions on Iran remain in place and will continue to be enforced.
'Don't think people should take narrow view of deal'
Talking about the US's remarks on the deal, Jaishankar said, "I did see some of the remarks which were made...I think it's a question of communicating...getting people to understand, that this is actually for everyone's benefit...I don't think people should take a narrow view of it." "If you look at the US's own attitude towards the port in Chabahar, the US has been appreciative of the fact that Chabahar has a larger relevance...we will work at it," he added.
Watch: Jaishankar's statement here
The long-term bilateral contract between India, Iran
On Monday, the Long-Term Bilateral Contract on Chabahar Port operation was signed between Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organisation (PMO). According to this agreement, IPGL has been granted the right to operate Shahid-Behesti port in the Chabahar Port Development Project for 10 years. The Indian company is set to invest around $120 million in equipping the port during this long-term lease agreement.
Vital transit hub
The Chabahar Port is expected to serve as a vital 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 this port. The new pact replaces a 2016 agreement which covered India's operations at Shahid Beheshti terminal in Chabahar and was renewed annually. This is the first time India has taken over the management of an overseas port.
Port to benefit entire region
On Tuesday, Jaishankar also explained that despite India's long association with the project, it had been unable to secure a long-term agreement due to "various problems on the Iranian end." He added, "Finally, we were able to sort this out and we were able to get the long-term agreement done. The long-term agreement is necessary, because without it you cannot really improve the port operation. And the port operation we believe, will benefit the entire region."
