Economy

India gets United States waiver for development of strategic Chabahar Port in Iran

India gets United States waiver for development of strategic Chabahar Port in Iran

On Monday, the United States re-imposed a second round of sanctions on Iran, targeting the country's energy, shipping, banking and shipbuilding sectors.

"We have chose to issue temporary allotments to a handful of countries responsible to the specific circumstances and to ensure a well supplied oil market".

The exception granted by Secretary of State Mike Pompeo to U.S. sanctions reimposed on Iran on Monday also will permit the construction of a railway line from Chabahar port to Afghanistan, and for shipments to the war-torn country of non-sanctionable goods, like food and medicines, the spokesman said.

The State Department said it was carving exemptions from its sanctions on Iran's economy for the development of Chabahar along with an attached railway project and Iranian petroleum shipments to Afghanistan.

The decision by the Trump administration, which a day earlier imposed the toughest ever sanctions on Iran and is very restrictive in giving exemptions, is a seen as a recognition by Washington of India's major role in the development of the port on the Gulf of Oman, which is of enormous strategic importance for the reconstruction of war-torn Afghanistan.

"These activities are vital for the ongoing support of Afghanistan's growth and humanitarian relief", the spokesman said in a statement emailed to Reuters.

Captains talk ahead of ICC Women's World Twenty20 in the West Indies
The India captain and his opening partner Shikhar Dhawan consumed a few overs in assessing the pitch before loosening their arms. The victory meant the home side went 2-0 up in the three-match series, having pocketed the opener in Kolkata on Sunday.

"We are making it abundantly clear to the Iranian regime that they will face mounting financial isolation until they fundamentally change their destabilizing behavior".

The sanctions, however, threatened India's ability to obtain financing for the development of Chabahar, which could potentially open the way for millions of dollars of trade for land-locked Afghanistan and end its dependence on Pakistan's port of Karachi.

Iran has plans to link the port by railway through Zahedan on the Pakistani border up to Mashhad in the northeast, near the borders with Afghanistan and Turkmenistan. Steven Mnuchin, US Treasury Secretary, said Washington aimed to bring Iranian oil exports to zero, but 180-day exemptions were granted to eight importers: China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey.

Any return to limiting supply would follow a June decision by the OPEC-led group to relax output curbs in place since 2017, after pressure from U.S. President Donald Trump to cool prices and make up for losses from Iran.

India, Smith argued, "made a convincing case" that its principal interest in the port was to develop alternative infrastructure links to Afghanistan that bypass Pakistan, which also serves the U.S. national security interests.