India Engages Stakeholders on US Sanctions Waiver for Chabahar Port
The Ministry of External Affairs (MEA) announced on Tuesday that India is actively engaging with relevant stakeholders concerning the United States' conditional sanctions waiver for the Chabahar Port in Iran. This waiver is set to remain valid until April 26, 2026, as part of ongoing diplomatic efforts to address regional economic and strategic interests.
Chabahar Port's Strategic Importance
The Chabahar Port project was originally conceptualized to provide essential connectivity to Afghanistan, supporting its reconstruction and economic development. Additionally, it aims to strengthen trade and economic links with Central Asia, positioning India as a key player in regional infrastructure and commerce.
India's Financial Commitment and Contract Details
On May 13, 2024, India Ports Global Limited (IPGL) signed a ten-year contract with the Ports and Maritime Organisation (PMO) of the Islamic Republic of Iran. This agreement focuses on equipping and operating the Shahid Beheshti Terminal at Chabahar Port. Under this contract, India has fulfilled its commitment by contributing $120 million toward the procurement of port equipment.
In a written reply to CPI(M) MP John Brittas, Minister of State in the MEA, Kirti Vardhan Singh, emphasized this financial fulfillment. He stated, "On 13 May 2024, India Ports Global Limited (IPGL) signed a ten-year contract with the Ports and Maritime Organisation (PMO) of Iran for equipping and operating the Shahid Beheshti Terminal at Chabahar Port. Under the provisions of the contract, India has fulfilled its commitment of contributing USD 120 million for the procurement of port equipment. Therefore, there is no further financial commitment from the Government of India towards the port."
US Sanctions Framework and Diplomatic Engagements
Singh also addressed changes in the US sanctions framework, noting that on September 16, 2025, the US State Department revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter Proliferation Act of 2012. This revocation, effective from September 29, 2025, initially impacted Afghanistan's reconstruction and economic development efforts.
Following discussions with the US side, a conditional sanctions waiver was extended until April 26, 2026. Singh added, "Pursuant to discussions with the US side, the latter issued guidance extending the conditional sanctions waiver until 26 April 2026. The Government of India remains engaged with all concerned in order to address the implications of these developments."
Earlier, in January 2026, MEA spokesperson Randhir Jaiswal reaffirmed India's ongoing engagement with the US. He stated, "On the question of Chabahar, on 28 October, 2025, as you are aware, the US Department of the Treasury had issued a letter outlining guidance, the guidance on the Conditional Sanctions Waiver, which is valid until 26 April 2026. We remain engaged with the US side in working out this arrangement."
Broader Regional Context
This development occurs amidst broader regional tensions, including updates on the Israel-Iran conflict and potential involvement from Gulf allies. However, India's focus remains on ensuring the continuity of the Chabahar Port project, which is crucial for regional connectivity and economic stability.
The MEA's statements underscore India's diplomatic efforts to navigate complex international sanctions while advancing its strategic interests in Central Asia and Afghanistan through infrastructure development.
