May 14th 2024.
The United States has issued a warning to all countries that engage in business partnerships with Iran, cautioning them about the potential consequences of sanctions. This comes after news broke that India has signed a deal with Iran to operate the Chabahar port for the next decade. The strategic port, located in the Sistan-Balochistan province on Iran's southern coast, has been a point of interest for India since 2003. Its development has been hindered by US sanctions in response to Iran's suspected nuclear program.
On Monday, India officially signed the agreement, which will allow them to expand trade with Central Asia through the port. This is a significant step for India, as the Chabahar port offers a gateway for their goods to reach landlocked countries like Afghanistan and Central Asia through the International North-South Transport Corridor. This will bypass the need to use Pakistan as a route, which has previously caused delays and complications in trade.
When asked about the deal, State Department Deputy Spokesperson Vedant Patel stated that the US is aware of the reports and will let India speak about their foreign policy goals and relationship with Iran. However, he reiterated that US sanctions on Iran are still in place and will continue to be enforced. He also reminded everyone considering business deals with Iran to be aware of the potential risks involved.
India and Iran have been working together to promote the Chabahar port as a key hub for the International North-South Transport Corridor, a project aimed at facilitating the movement of goods between India, Iran, Afghanistan, and other countries in the region. The 10-year agreement was signed by Indian Ports Global Limited and the Port and Maritime Organisation of Iran, with plans for investments totaling $370 million.
This new agreement replaces a previous one from 2016, which covered India's operations at the Shahid Beheshti terminal in the Chabahar port and was renewed on an annual basis. The Chabahar port has already been used by India to send aid and supplies to Afghanistan and Iran, and with this new agreement, it will become a crucial trade route for India.
The distance between India's Kandla port and Chabahar is 550 nautical miles, making it the closest Indian port to Chabahar. Mumbai, on the other hand, is 786 nautical miles away from the port. With this new deal in place, India will have easier access to the Central Asian market and will be able to strengthen its trade relationships with other countries in the region.
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