Big Diplomatic Win: India Gets 6-Month US Sanctions Waiver For Chabahar Port
In a major diplomatic victory for New Delhi, the United States has granted India a six-month exemption from its sanctions on Iran, allowing it to continue operations at the strategically vital Chabahar Port. The Ministry of External Affairs (MEA) confirmed the waiver on Thursday, a move that provides crucial relief for India’s regional connectivity ambitions and safeguards its significant investments in the project.The exemption, which extends until April 2026, allows the state-run India Ports Global Limited (IPGL) to operate the Shahid Beheshti terminal without fear of penalties under the stringent Iran Freedom and Counter-Proliferation Act (IFCA).
This decision acknowledges Chabahar’s critical role as a humanitarian and trade gateway to Afghanistan and Central Asia, providing a key route that bypasses Pakistan. “The government remains committed to the full development of Chabahar Port,” the MEA stated, highlighting that the facility has already been used to ship wheat and medical supplies to Afghanistan.The waiver ensures that India’s commitments under the 10-year agreement signed with Iran in May 2024 remain on track. As part of that deal, IPGL has pledged a total investment of $370 million for the port’s development, building on the more than $120 million already spent on infrastructure.
The port is a cornerstone of the International North-South Transport Corridor (INSTC), a multi-modal network connecting India to Russia and Europe through Iran.This development is seen as a significant strategic win for India, particularly as it seeks to counterbalance China’s heavy investment in Pakistan’s Gwadar Port.
The Chabahar project has been treated as an exception to US sanctions on Iran since 2018, but renewed sanctions last month had cast a shadow of uncertainty over its future. The latest waiver reaffirms the port’s unique status as a project vital for regional stability and trade, even as India and the US continue separate negotiations on a larger trade agreement
