Chabahar port: Are US-Iran tensions affecting India's dream project?
After a brief period of calm, US-Iran relations have once again become strained under Donald Trump's presidency. Officials at India's Ministry of External Affairs worry that Trump's bid to re-impose sanctions on Tehran may slow down the pace of building the strategically important Chabahar port. Why is Chabahar important to India? How are US-Iran tensions delaying its completion? Read on to know.
Donald Trump's Iran policy
President Trump has so far been openly hostile to Tehran and has classified it a "rogue regime" along with North Korea. He termed the Iran nuclear deal, signed under the Obama presidency a one-sided deal and the "worst transaction" the US had ever entered into. He recently threatened to withdraw from the deal and called to re-impose economic sanctions on Tehran.
Why is Chabahar important for India?
Chabahar improves India's connectivity to Afghanistan and Central Asian countries. Its location close to Gwadar port gives India an immense strategic advantage and enables India to check on Chinese and Pakistani activities in the region. Chabahar is also an important link within the International North South Transport Corridor (INSTC) which is being touted as an alternative to China's One Belt One Road.
US sanctions hinder India, despite relentless efforts
Although India has been pushing for the project for almost a decade, there has been little progress on the ground due to bureaucratic delays and tough negotiations. After sanctions were lifted in 2016, India promised $500 million to develop the port. At a recent deposition before a parliamentary panel, officials conceded that the project hadn't moved ahead since 2008 because of US sanctions.
What does Washington expect?
The US regards the Iranian Revolutionary Guard Corps (IRGC) a terrorist organization. Washington essentially doesn't want its partners to do business with firms in Iran with ties to the IRGC, to avoid economically strengthening them. 12 companies were included in the sanctions list A top official recently urged countries to take a " hard look at who you're doing business with in Iran."
Why does New Delhi worry?
According to recent reports, several western manufacturers have refused to supply equipment for Chabahar development. India sees this as a manifestation of US sanctions negatively impacting India's strategic ambitions. Additionally, oil imports from Iran have been declining, pointing to a worrying possibility that this could be due to US interference. Iranian Ambassador in New Delhi Gholamreza Ansari accused Washington of such interference recently.
What next?
The issue is expected to figure prominently during US Secretary of State Rex Tillerson's upcoming India visit. Moreover, India will have to tread carefully to manage its interests without angering Washington or Tehran.
