Home business US Grants India Six-Month Sanctions Waiver for Chabahar

US Grants India Six-Month Sanctions Waiver for Chabahar

The waiver, valid until April 2026, will allow India Ports Global Private Limited (IPGPL) to maintain management of the Shahid Beheshti terminal at Chabahar.
Chabahar
A file photo of Iran's Chabahar port.

The United States has granted India a six-month exemption from sanctions on Iran’s Chabahar port, effective October 29, enabling New Delhi to continue operations and development work at the strategically significant maritime facility.

At the Ministry of External Affairs (MEA) weekly briefing, spokesperson Randhir Jaiswal confirmed that the waiver, valid until April 2026, will allow India Ports Global Private Limited (IPGPL) to maintain management of the Shahid Beheshti terminal at Chabahar.

“We can confirm that India has received a six-month waiver from the United States for the Chabahar port project,” Jaiswal said.

During the same briefing, Jaiswal also said India is reviewing the implications of recent US sanctions on Russian oil companies. “We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” he stated, adding that India’s energy strategy remains focused on securing affordable and reliable supplies.

“Our position on the larger question of energy sourcing is well known. We are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people,” he added.

Located in Iran’s Sistan-Balochistan province along the Gulf of Oman, the Chabahar port serves as a crucial trade route for India to access Afghanistan and Central Asia, bypassing Pakistan. It also forms a key link in the International North-South Transport Corridor (INSTC), designed to connect India with Russia through Iran and the Caucasus.

The waiver took effect on October 29, following Washington’s earlier decision in September 2025 to revoke the previous exemption as part of its “maximum pressure” campaign against Tehran. The latest move effectively reinstates the waiver, ensuring India’s operational continuity at the port.

In May 2024, India signed a 10-year agreement with Iran to operate the Shahid Beheshti terminal through IPGPL, replacing an annual renewal system. The long-term lease provides greater stability for investors and ensures uninterrupted management. Since India began managing the terminal in 2018, more than five million tonnes of cargo have been handled through Chabahar.

The port’s proximity—just 172 kilometres from Pakistan’s China-backed Gwadar port—underlines its strategic value in India’s regional connectivity and outreach efforts.

US sanctions on Iran are grounded in the Iran Freedom and Counter-Proliferation Act of 2013, which authorises Washington to penalise entities engaging with key sectors of Iran’s economy. A waiver for Chabahar was first issued in 2018 to facilitate Afghanistan’s reconstruction and humanitarian trade but was withdrawn after the Taliban’s return to power in 2021.

The latest six-month reprieve indicates Washington’s acknowledgement of Chabahar’s ongoing strategic importance and India’s stabilising role in the region, particularly as China expands its presence in Iran under their 25-year strategic cooperation agreement.

For India, the waiver offers space to strengthen port operations, further integrate Chabahar with the INSTC, and sustain engagement with Tehran without breaching US sanctions. However, the limited duration highlights the continued need for careful diplomatic navigation.

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