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3h ago

U.S. Sanctions on India’s Chabahar Project Take Effect After Waiver Revoked

Washington cast the reversal as part of a maximum-pressure push to isolate Iran.

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A truck transporting cargo from Afghanistan to be exported to India is seen in the southeastern Iranian coastal city of Chabahar on February 25, 2019

Overview

  • The State Department ended the 2018 exemption for Chabahar, making the penalties effective September 29 as broad UN sanctions on Iran also returned a day earlier.
  • Under U.S. law, Indian entities including state-run India Ports Global Limited have 45 days to exit or face asset freezes and a bar on U.S. transactions.
  • India’s foreign ministry said it is examining the implications of the U.S. move.
  • IPGL last year signed a 10-year operating pact and pledged about $370 million, and since 2018 the port has handled over 450 vessels, 134,082 TEUs and 8.7 million tons of cargo.
  • Analysts say the port anchors India’s access to Afghanistan and the INSTC and counters nearby China-backed Gwadar, while experts warn sanctions could trigger banking de-risking that hampers operations.