India’s Chabahar Port gets brief sanctions relief

The United States (US) has granted a six-month exemption from its sanctions on India’s Chabahar Port project in Iran, effective retroactively from October 29, the Ministry of External Affairs (MEA) said on Thursday. The move allows India to develop and operate the strategically important port without facing punitive restrictions.

Confirming the decision, MEA spokesperson Randhir Jaiswal said the Government has received official communication regarding the waiver and reiterated India’s commitment to the project, which is seen as a vital trade and transit link connecting India with Afghanistan and Central Asia. “We have been informed of a six-month exemption from US sanctions on the Chabahar Port project. This will allow ongoing activities at the port to continue,” Jaiswal told reporters at the weekly press briefing.

He added that India is also assessing the impact of recent US sanctions on Russian oil firms, emphasising that domestic priorities drive New Delhi’s energy choices. Jaiswal further noted that discussions between India and the US to finalise a bilateral trade agreement remain “active and ongoing,” highlighting the broader context of economic cooperation between the two countries.

Last year, India signed a 10-year agreement with Iran to develop and operate the Shahid Beheshti terminal at Chabahar Port through India Ports Global Limited (IPGL), committing investments worth $370 million. Located on Iran’s Gulf of Oman coast, the port serves as a strategic hub providing India an alternative route to Afghanistan and Central Asia, bypassing Pakistan.