US warns of sanctions following India-Iran Chabahar port deal

WASHINGTON: The United States (US) Department of State’s Deputy Spokesperson Vedant Patel warned India of potential sanctions if it engaged in any business dealings with Iran, including Chabahar port.

The deputy spokesperson’s comments came in response to inquiries about the recent Chabahar port deal between India and Iran. “Anyone considering business deals with Iran needs to be aware of the potential risk of sanctions”, he said.

Read more: India to sign 10-year pact with Iran for Chabahar port management, ET reports

During a recent press briefing from Washington, Patel pointed out the need to understand the importance of risk of sanctions for any entity considering business dealings with Iran.

“We [are] aware […] that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals [and] its own bilateral relationship with Iran.”

However, Patel was quick to say that the US stance on sanctions was firm and that any entity needed to carefully consider the implications of their business engagements with Iran, including the Chabahar port deal.

“[The US has said] this in a number of instances, that any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up.”

India and Iran recently signed a ten-year agreement on operating the Chabahar port, situated in Iran’s Sistan-Balochistan province. The port is strategically important due to its proximity to India and its access to the open seas. India also hopes to use the port as rival to Pakistan’s Gwadar Port deals with China.

The agreement attracted attention from various quarters, including the United States (US). The North American superpower issued warnings about potential sanctions for entities engaging in business deals with Iran.

As per the agreement, India will help develop the Chabahar port, including supplying essential equipment and actively participating in its operations.

Read more: US signals potential sanctions on Pakistan over Iran agreements

The port is already in operation, with first cargo fleets releasing the Iranian port in 2018. Mirroring China’s BRI, India and Iran signed the Chabahar Agreement in 2016 with Afghanistan as well in an aim to establish the International North–South Transport Corridor. The corridor hopes to link India and Iran with Russia, Central Asia and Europe through a network of rails.