MEA On US Removing Chabahar Port Waiver: Examining Implications

The Ministry of External Affairs on Friday said that India is “examining the implications” of the United States’ decision to revoke the sanctions waiver that applied to the Chabahar Port project in Iran.

Responding to a question on whether India would consider shutting down its operations, the MEA spokesperson Randhir Jaiswal said, “We have seen the press statement which was issued by the US side yesterday on the revocation of the sanctions waiver that applies to Chabahar Port. We are presently examining the implications that this revocation has for India.”

Earlier in the day, the Trump administration, in yet another hard move against India, announced the revocation of its waiver of sanctions over the Iranian port of Chabahar in almost ten days, terminating a special waiver granted to India in 2018.

According to a statement issued by the US Department of State on Tuesday, the operators of the Chabahar Port in Iran will face US sanctions starting September 29.

“Additionally, consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA,” State Department’s Principal Deputy Spokesperson Thomas Pigott said in the statement.

The move was announced to target Iran’s financial network for its military and to put “maximum pressure” on the Islamic State.

“Today, the United States is countering Iran’s destabilising activities by designating an international illicit financial network, along with several individuals and entities based in Hong Kong and the United Arab Emirates. These networks have facilitated the sale of Iranian oil, with proceeds benefiting Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF) and Ministry of Defence and Armed Forces Logistics (MODAFL). These funds are used to support regional terrorist proxies and advance weapons systems that pose a direct threat to U.S. forces and our allies,” the statement read.

This was made to isolate the Iranian regime and could significantly impact India’s strategic investments in the port.

Chabahar Port, located in southeastern Iran near the China-controlled Gwadar Port, stands out due to its strategic and logistical advantages. It includes two main terminals, Shahid Kalantari and Shahid Beheshti, each equipped with five berths, facilitating significant cargo handling capabilities.

In 2024, India signed a 10-year agreement with Iran for the operation of the Chabahar Port. This long-term deal, signed between Indian Ports Global Ltd. (IPGL) and Iran’s Port and Maritime Organisation (PMO), grants India operational control over the Shahid Beheshti terminal, a key component of Chabahar’s port infrastructure. (ANI)