Chabahar port: US Grants India Six-Month Sanctions Waiver for Chabahar Port Project Amid Ongoing Trade Talks

Chabahar port

The United States has granted India a six-month waiver from American sanctions for its continued involvement in the strategic Chabahar Port project in Iran, India’s Ministry of External Affairs (MEA) confirmed on Thursday. The exemption underscores Washington’s recognition of the port’s importance for regional connectivity and humanitarian aid to Afghanistan, even as broader US sanctions on Iran remain in place.

MEA spokesperson Randhir Jaiswal, addressing the weekly media briefing, welcomed the move and highlighted that discussions between New Delhi and Washington on a potential trade deal are ongoing. “Yes, the United States has granted India a six-month waiver with respect to the Chabahar Port project. We appreciate this understanding of India’s developmental and connectivity initiatives in the region,” Jaiswal said.

The Chabahar Port, located on Iran’s southeastern coast, has long been viewed by India as a strategic counterbalance to Pakistan’s Gwadar Port, developed by China under the China-Pakistan Economic Corridor (CPEC). It offers India a critical maritime route to access Afghanistan and Central Asia, bypassing Pakistan.

The waiver comes at a crucial time as India seeks to expand operations at the port, which has faced repeated delays due to geopolitical tensions and the reimposition of US sanctions on Iran after Washington’s withdrawal from the 2015 nuclear deal in 2018. The temporary exemption will allow India to continue port development and logistical operations without facing secondary sanctions under US laws targeting Iranian entities.

Jaiswal emphasized that India’s engagement in Chabahar is aimed purely at advancing regional economic connectivity and stability. “The Chabahar Port has been a key component of India’s vision to enhance regional connectivity and support the economic growth of Afghanistan and Central Asia. It is not directed against any country but is meant to benefit the region as a whole,” he said.

The MEA spokesperson also said that talks between India and the United States on a potential bilateral trade deal are continuing “in a constructive manner.” The two countries have been in discussions to address tariff issues and expand market access in sectors such as agriculture, pharmaceuticals, and information technology.

“Our discussions with the United States on trade-related matters are ongoing. Both sides are exploring areas of mutual benefit,” Jaiswal said. A trade agreement between the two countries has been under negotiation for several years, with officials on both sides noting progress but cautioning that differences remain over specific market access and regulatory concerns.

The US is one of India’s largest trading partners, with bilateral trade crossing the $200 billion mark in 2024. Washington remains a key source of technology and investment, while India continues to be a significant market for American goods and services.

Responding to questions about the new round of US sanctions on Russian oil companies, Jaiswal said that India is “studying the implications” of the move and will take decisions based on national interest and energy security considerations.

“We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” he stated.

He reaffirmed India’s long-standing position that its energy decisions are guided by the need to ensure affordable and reliable supplies for its vast population. “Our position on the larger question of energy sourcing is well known. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people,” Jaiswal said.

India has been among the largest importers of discounted Russian crude since the start of the Ukraine conflict in 2022, even as Western nations have sought to limit Moscow’s energy revenues. New Delhi has consistently maintained that its oil purchases from Russia are a matter of national interest and do not violate international sanctions.

Analysts say the US waiver for Chabahar and India’s measured response to Russian sanctions highlight New Delhi’s careful diplomatic balancing act. India continues to deepen ties with Washington through the Quad and defense cooperation while maintaining strategic autonomy in its engagements with Russia and Iran.

The Chabahar waiver signals Washington’s recognition of India’s unique geopolitical position and its role in stabilizing the wider Indo-Pacific and Central Asian regions. It also reflects the growing maturity in India-US ties, where both countries have shown flexibility in managing differences while advancing strategic convergence.

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