US revokes Chabahar Port waiver, India’s deal faces sanctions risk
US revokes Iran’s Chabahar Port waiver, threatening India’s strategic 10-year port deal and its trade corridor to Afghanistan and Central Asia
The US has decided to revoke the sanctions waiver linked to Iran’s strategic Chabahar Port granted in 2018. The move will lead to persons linked to operations at the Chabahar Port being exposed to sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA) and will come into force from September 29. The announcement was made by the US Department of State in a release.
The Department of State further stated that the move was in line with President Donald Trump’s policy of exerting “maximum pressure” on the Iranian regime.
"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 statement said.
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‘Countering Iran’s destabilising activities’
Elaborating further, the Department of State said that the US was seeking to counter the destabilising activities resorted to by Iran by designating an international illicit financial network, along with several individuals and entities based in Hong Kong and the United Arab Emirates.
"These networks have facilitated the sale of Iranian oil, with proceeds benefiting Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defence and Armed Forces Logistics (MODAFL)," the statement said.
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‘Disrupting illicit funding streams’
It further stated that the Trump administration was committed to disrupting illicit funding streams financing Iran’s malign activities.
"As long as Iran devotes its illicit revenues to funding attacks on the United States and our allies, supporting terrorism around the world, and pursuing other destabilising actions, we will continue to use all the tools at our disposal to hold the regime accountable," the US State Department said.
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Will affect India
The move will impact India as it is involved in the development of a terminal at the Chabahar port on the Gulf of Oman. Earlier, on May 13, 2024, India signed a 10-year contract to operate the port that will help it expand trade with Central Asia.
This was the first time India would take over the management of an overseas port. New Delhi had proposed to develop Chabahar port way back in 2003 to provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called the International North-South Transport Corridor, bypassing Pakistan.
(With agency inputs)