“Anyone considering business deals with Iran…”: US issues a warning after the Chabahar Port contract between Iran and India

May 14, Washington, DC [US]: The United States has issued a warning to “anyone” contemplating doing business with Tehran, stating that they should be aware of the “potential risk of sanctions,” only hours after India struck a contract to run the Chabahar Port in Iran for ten years.

However, Vedant Patel, the Principal Deputy Spokesperson for the US State Department, also said that the US would allow the Indian government to discuss its foreign policy objectives.

“We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port. I would let the government of India speak to its own foreign policy goals, vis-à-vis the Chabahar Port as well as its own bilateral relationship with Iran,” Vedant Patel said during a press conference on Monday (local time zone).

He continued: “I would just say…US sanctions on Iran remain in place and we will continue to enforce them.”

“Any entity, anyone considering business deals with Iran, needs to be aware of the potential risk they are opening themselves up to—the potential risk of sanctions,” Patel said.

On Monday, the Port & Maritime Organization (PMO) of Iran and Indian Ports Global Limited (IPGL) inked a long-term bilateral contract on Chabahar Port Operation, allowing Shahid-Behesti port to operate as part of the Chabahar Port Development Project for ten years.

For the term of the contract, IPGL has agreed to continue outfitting and managing the port. After ten years, both parties would deepen their partnership in Chabahar.

About USD 120 million will be spent by IPGL outfitting the port. Additionally, India has extended an offer of an in-credit window of $250 million USD for projects that both parties agree upon that would enhance the infrastructure in Chabahar.

The bilateral connections between the two nations are further strengthened by this 10-year long-term leasing arrangement, which also increases confidence and trust among the commercial communities in the area.

A showpiece project between India and Iran, the Chabahar Port is a crucial transit port for commerce with landlocked Central Asian nations like Afghanistan. India has played a significant role in the establishment and management of Chabahar Port.

The Indian government has made significant investments in the port’s infrastructure and amenities, enabling it to serve as a practical transit route for Indian products destined for Central Asia and Afghanistan.