Chabahar Port: US says sanctions possible after India-Iran port deal

Chabahar Port: US says sanctions possible after India-Iran port deal
A view of Chabahar seaport is seen during an inauguration ceremony for the first export convoy to India via Iran in Chabahar, Iran on February 25, 2019.Getty Images

Days after India signed a 10-year deal to perform a harbor with Tehran, the US has warned of potential sanctions for any nation considering company deals with Iran.

India had entered an arrangement to create the strategically important Chabahar interface, near to Iran’s border with Pakistan, in 2016.

On Monday, it signed a extended- word deal with Iran to produce it more.

India’s transport minister called it a “historic time in India- Iran relationships”.

The US, which has placed more than 600 restrictions on Iranian-related organizations over the past three decades, does not agree with the decision.

When asked about the offer, the nation’s State Department Deputy Spokesperson Vedant Patel claimed that Washington may continue to impose the sanctions against Iran.

Anyone looking into business with Iran needs to be aware of the dangers they could face as well as the possible risk of punishment, he said.

India has not yet responded to the speech.

At the end of 2018, India took over the port’s activities. Unlike the area way through Pakistan, where India and Pakistan have strained relations, the interface made it possible to transport American goods and products to Afghanistan and Central Asia.

According to authorities, 2.5 million tonnes of grains and 2 000 kilograms of pulse have been transported from India to Afghanistan so far using the Chabahar interface.

The Indian Ports Global Limited ( IPGL ) and the Port & Maritime Organization of Iran ( PMMO ) announced on Monday that they had signed a long-term agreement to develop the port.

Under the agreement, IPGL will invest about$ 120 million with an additional$ 250 million in financing, bringing the contract’s value to$ 370 million, said Iran’s Minister of Roads and Urban Development Mehrdad Bazrpash.

S. Jaishankar, the Indian government’s foreign minister, predicted that the agreement did” clear the way for larger purchases to be made in the port.”

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