US warns of 'potential sanctions' for business deals with Iran
The United States has issued a warning to all nations considering business deals with Iran, saying that they run the "potential risk of sanctions." This came just hours after India finalized a decade-long contract to manage Iran's Chabahar Port. "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).
Why does this story matter?
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 port and was renewed annually. This is the first time India has taken over the management of an overseas port.
'US sanctions on Iran remain'
Patel further clarified that the US sanctions on Iran are still in effect and will continue to be enforced. However, the US spokesperson noted that it would let the Indian government speak on its foreign policy goals. "I will let the government of India speak to its own foreign policy goals vis-à-vis the Chabahar port as well as its own bilateral relationship with Iran," Patel added.
₹100 crore allocated for Chabahar
Notably, the Ministry of External Affairs has allocated ₹100 crore for the Chabahar Port for 2024-25. "This 10 years long term lease agreement further strengthens the bilateral ties between the two countries while bolstering confidence and boosting trust of trading communities from the region," an official statement said. Union Minister Sarbananda Sonowal, who attended the signing ceremony in Tehran, added that with this contract, "we have laid the foundations of India's long-term involvement at Chabahar."
