INDIA and Iran signed a 10-year contract to operate the strategic Iranian port of Chabahar earlier this week.
The deal allows India Ports Global (IPGL) company to develop and control the management of the strategic port.
The bilateral deal of managing the infrastructure is important for both countries in so many ways as the port will open up trade between Iran, India, Afghanistan, and other Central Asian countries.
The Indian company has invested $85 million to develop the Iranian port since 2016 and signed the deal despite threats of U.S. sanctions.
Meanwhile, U.S. State Department Deputy Spokesperson Vedant Patel acknowledged that Washington was aware of the deal and emphasized U.S. sanctions on Iran remain in place.
“So, we’re aware of these reports…and we’ll continue to enforce them,” Vedant Patel U.S. State Department Deputy Spokesperson said.
Patel added anyone considering business deals with Iran could be potentially targeted by U.S. sanctions, adding that no person or entity will be exempted.
“Any entity, anyone considering business deals with Iran…So, there’s not an exemption for this specifically? No,” he added.
Responding to the sanctions warning, India’s foreign minister S Jaishankar asked the United States not to take a “narrow view” of its port agreement with Iran, noting that the move will benefit the region.
He added that the U.S. approach towards the Iranian port was positive until the long-delayed agreement was sealed with the Indians.
