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India secures 6-month US sanctions exemption for Iran's Chabahar Port

Iran Press TV

Thursday, 30 October 2025 6:45 PM

India has confirmed that the United States will not impose its sanctions on the Chabahar Port in Iran for the next six months, allowing New Delhi to continue its investment and operations at the strategic facility uninterrupted.

In a statement on Thursday, the Indian Ministry of External Affairs (MEA) announced that US sanctions would be waived for Chabahar Port starting October 29, lifting previous restrictions that had threatened India's $370 million, 10-year development contract.

"We continue to remain engaged with the US side on finalizing the trade deal. Both sides are continuing to hold discussions. For any further update, I would refer you to the Ministry of Commerce," MEA spokesman Randhir Jaiswal said.

Previously, the US State Department had announced that the exemption, in place since 2018, would end on September 29, stressing that the move was consistent with the Donald Trump administration's so-called "maximum pressure" policy against Iran.

The revocation meant that any person or company engaged in the port's operation could be exposed to sanctions.

India operates the Shahid Beheshti terminal at Chabahar, which serves as a vital maritime gateway to Afghanistan, Central Asia and the Indian Ocean.

Chabahar, located in Sistan-Baluchestan province in Iran's southern coast, holds strategic importance not only for India's trade ambitions but also as a critical corridor for delivering humanitarian aid to Afghanistan, bypassing Pakistan.

The exemption mirrors a similar relief granted in 2018 under the first Trump administration, which also permitted ongoing Indian port development despite broad sanctions on Iran.

The announcement comes amid intensified India-US negotiations over a bilateral trade agreement.

Jaiswal emphasized that talks are ongoing, while Indian Commerce Minister Piyush Goyal warned against haste or with a "gun to our head" in finalization.

Meanwhile, India is also examining the broader implications of US sanctions on Russian oil firms, noting its energy procurement strategy aims at diverse and affordable sourcing.

"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," Jaiswal said.

"Our position on the larger question of energy sourcing is well-known. In this endeavor, 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," the spokesman added.

India has already provided equipment worth $25 million, shipped food supplies through the Chabahar Port, and, in May 2024, it signed a 10-year agreement to operate the port. Under the deal, India pledged $120 million in investment and offered an additional $250 million credit line for infrastructure upgrades.

Iran has long slammed Washington's reliance on sanctions. Officials in Tehran describe the approach as an "addiction" that has persisted since the 1979 Islamic Revolution, with various Iranian entities repeatedly targeted under shifting pretexts.