The US on Tuesday warned that any country considering business deals with Iran needs to be aware of the potential risk of sanctions. The warning came after India signed an agreement to operate the Chabahar Port in Iran for a period of 10 years. The US State Department Principal Deputy Spokesperson Vedant Patel, however, mentioned that Washington DC will let New Delhi speak on its foreign policy goals.
"We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port, I would let the government of India speak to its own foreign policy goals, vis-a-vis the Chabahar Port as well as its own bilateral relationship with Iran," Patel said at a press briefing.
He, however, added that the US sanctions on Iran are in place and Washington DC will continue to enforce them. "Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk of sanctions," Patel said.
On Monday, India signed a 10-year agreement with Iran to develop as well as operate the Chabahar Port. The deal was signed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, news agency Reuters reported citing authorities in both the countries.
IPGL first took over operations of the port at the end of 2018 and has since handled container traffic of more than 90,000 TEUs and bulk and general cargo of more than 8.4 million tonnes, an Indian government official said.
A total of 2.5 million tonnes of wheat and 2,000 tonnes of pulses have been shipped from India to Afghanistan through Chabahar Port, the official added. IPGL will invest around $120 million in equipping the port. Besides this, India has also offered an in-credit window of around $250 million, for mutually identified projects aimed at improving the infrastructure.
India has been developing the port in Chabahar on Iran's south-eastern coast as a way to transport goods to Iran, Afghanistan and central Asian countries. With this, India will be able to bypass the ports of Karachi and Gwadar in its neighbouring country Pakistan. Union Shipping Minister Sarbananda Sonowal said the port in Chabahar will also lead to the promotion of a joint initiative to create a regional and international transport corridor.
(With agency inputs)