The United States has once again extended a sanctions waiver for India's operations at the Chabahar Port in Iran, granting a six-month extension until April 2026. This move provides relief to India's efforts to enhance connectivity to Central Asia and Afghanistan. The waiver allows India Ports Global Limited (IPGL) to continue operations at the Shahid Beheshti Terminal without the immediate threat of sanctions.
The Chabahar Port is strategically located on Iran's southeastern coast, along the Gulf of Oman. Its location, approximately 950 km from Afghanistan, makes it a crucial gateway to the Indian Ocean, allowing India to bypass Pakistan's overland routes for trade with Afghanistan and Central Asia. The port also offers landlocked Central Asian countries like Uzbekistan and Kazakhstan direct access to the Indian Ocean.
India has invested over $120 million in developing the Shahid Beheshti terminal as part of a 10-year agreement signed in May 2024. This investment includes upgrading equipment and connecting the port to the International North-South Transport Corridor (INSTC), a multimodal trade route linking India, Iran, Russia, and Central Asia. According to India, the port experienced a 43% increase in vessel traffic and a 34% rise in container traffic in 2023-2024, and these numbers are expected to increase once the port is fully operational.
The US had previously set a September 29 deadline for the revocation of the sanctions waiver. This initial revocation sparked concerns and intense negotiations between India and the United States. The US State Department had stated that the move aligned with Washington's efforts to disrupt "illicit financial networks that sustain the Iranian regime and its military activities".
The Chabahar port project is a pillar of New Delhi's strategy to access Afghanistan, bypassing the traditional land route via Pakistan. The port encompasses a 7,200-km-long multimodal transport corridor, connecting Western ports to Russia via countries in Central Asia and the Caucasus regions.
This recent extension reflects India's dedicated efforts and diplomatic negotiations with the United States. The Ministry of External Affairs (MEA) has stated that they continue to remain engaged with the US side on finalizing the trade deal and that both sides are continuing to hold discussions.
