Potential risk of sanctions for any business deals with Iran, says U.S., in wake of Chabahar port deal

US warns countries of sanctions for business dealings with Iran, acknowledges India-Iran Chabahar port deal.

Any country having business dealings with Iran runs the risk of sanctions, the United States has said, noting that it is aware that Iran and India have signed a deal concerning the Chabahar port.

Responding to the India-Iran Chabahar agreement, “We are aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will just say, as it relates to the United States, U.S. sanctions on Iran remain in place and we’ll continue to enforce them,” State Department Deputy Spokesperson Vedant Patel told reporters at his daily news conference.

Over the last months, the U.S. has imposed sanctions to counter Iran’s activities, taking aim at its drone and missile programs, as well as its financing of groups like Hamas.

India and Iran on May 13 signed a 10-year contract, according to which India Ports Global Ltd. (IPGL) will invest about $120 million to equip and develop the Chabahar port terminal that India has been working on thus far as a means to build a trade corridor via Iran to Afghanistan, Central Asia and on to Russia. 

Chabahar agreement can be driver of Iran-India relations: Ambassador Iraj Elahi

A memorandum of understanding for the development of the Chabahar port by India was signed in May 2015. The contract was executed on May 23, 2016, during the visit of Prime Minister Narendra Modi to Iran.

Chabahar is a deep water port located in the Sistan-Baluchistan province of Iran. During the visit of Mr. Modi to Iran in May 2016, a trilateral agreement to establish the International Transport and Transit Corridor (Chabahar Agreement) was signed by India, Iran, and Afghanistan.