India secures US sanctions waiver for port in Iran
India has been granted a six-month extension of a US sanctions waiver for operations at the Iranian port of Chabahar until early next year, the Indian Foreign Ministry announced on Thursday.
The move comes weeks after Washington decided to revoke the waiver as part of its “maximum pressure” campaign against Tehran. The decision had been set to take effect on September 29, although India was previously able to extend the deadline until October 28, according to the Economic Times report.
The waiver, first announced in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), exempted Chabahar from US sanctions, acknowledging its role in facilitating reconstruction efforts in Afghanistan.
The project has already facilitated shipments of wheat and urea to Afghanistan. For India, however, the ability to operate the port also means expanding trade with Russia and Central Asia, bypassing Pakistani routes.
India and Iran inked a ten-year deal for the development and operation of the Shahid Beheshti Terminal at Chabahar in 2024. The port is a key strategic location in southeastern Iran, situated on the Gulf of Oman, and serves as an alternative trade route for India to access Russia, Afghanistan, and Central Asia while avoiding Pakistan.
The port is also a key part of the International North-South Transport Corridor (INSTC), a shipping route developed by India, Iran, and Russia as an alternative to the Suez Canal.
The Trans-Caspian Route of the INSTC connects Russia’s Astrakhan to Iran’s Bandar-e-Anzali, then crosses Iran to Chabahar and on to Mumbai. The INSTC also has two alternative routes connecting Iran and Russia – one through Azerbaijan and the other via Central Asia.
Trade between India and Russia using the INSTC almost doubled last year, Russian Railways official Dmitry Kryukov told the media earlier this year.
The development also comes as New Delhi and Washington negotiate a trade deal amid increasing US pressure on India to stop importing Russian oil. The US has imposed 50% levies on Indian exports, which include a 25% punitive tariff for New Delhi’s purchases of Russian oil and weaponry.
