India and Iran have struck a 10-year deal to develop and manage the Port of Chabahar.
India has been building the Port of Chabahar on Iran’s south-eastern coast along the Gulf of Oman to deliver commodities to Iran, Afghanistan, and Central Asian nations, bypassing its competitor Pakistan’s ports of Karachi and Gwadar.
According to Reuters, US sanctions on Iran have resulted in the port’s development slowing down in recent years, despite India taking over the port’s operations at the end of 2018.
BBC News further revealed that at a press conference on 14 May, the country’s State Department Deputy Spokesperson, Vedant Patel, stated that US sanctions on Iran remain in place and would be enforced.
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“Any entity, anyone considering business deals with Iran – they need to be aware of the potential risks that they are opening themselves up to and the potential risk of sanctions,” said Patel.
The deal was reportedly struck on 13 May by the Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, according to BBC News.
Reuters noted that IPGL will invest around $120 million under the agreement, with an additional $250 million in financing, bringing the contract’s total value to $370 million.
