US says sanctions possible after India-Iran port deal

By Meryl Sébastien, BBC News, Kochi

Getty Images A view of the Chabahar seaport is seen during an inauguration ceremony of the first export convoy to India via Iran in Chabahar, Iran, February 25, 2019.Getty Images

India is developing the strategic port of Chabahar, close to Iran's border with Pakistan.

The United States has warned of possible sanctions on any country considering trade deals with Iran, hours after India signed a 10-year deal to operate a port with Tehran.

India had reached an agreement to develop the strategic Chabahar port, close to Iran's border with Pakistan, in 2016.

On Monday, it signed a long-term agreement with Iran to continue its development.

India's shipping minister called it a “historic moment in India-Iran relations.”

At a press briefing Tuesday, State Department deputy spokesperson Vedant Patel said when asked about the deal that U.S. sanctions on Iran were still in place and Washington would continue to enforce them. apply.

“Any entity, anyone considering entering into trade deals with Iran, needs to be aware of the potential risks they are exposing themselves to and the potential risk of sanctions,” he said.

India is yet to respond to the statement.

India took over operations of the port in late 2018. The port opened a transit route for Indian goods and products to Afghanistan and Central Asia, thereby bypassing the land route through Pakistan – India and Neighboring Pakistan shares strained relations.

So far, 2.5 million tonnes of wheat and 2,000 tonnes of pulses have been shipped from India to Afghanistan through Chabahar port, according to officials.

On Monday, India's Ministry of Shipping said Indian Ports Global Limited (IPGL) and Iran Ports and Maritime Organization have signed a long-term agreement for the development of the port.

Under the agreement, IPGL will invest around $120 million, plus $250 million in additional financing, bringing the contract value to $370 million, Iran's Minister of Roads and Development said urban, Mehrdad Bazrpash.

Indian Foreign Minister S Jaishankar said the deal “will pave the way for greater investments in the port”.

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