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US grants India six-month sanctions waiver to run Iran's Chabahar port, New Delhi says [Update@ Post#3]

LordJames

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I am quoting an Indian article from Indian sources.


India’s access to Afghanistan and Central Asia through Iran’s Chabahar Port faces a serious challenge as the United States revoked sanctions exemptions previously granted under the Iran Freedom and Counter-Proliferation Act (IFCA), effective September 29.

The US Department of State in a statement released Tuesday said, “consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025. Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.”

The development is part of Washington’s broader effort to curb networks linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) and prevent financing of Tehran’s military and regional proxy operations.

Chabahar: India’s strategic lifeline to Central Asia​

The move could expose Indian operators at the port to US penalties and complicate one of New Delhi’s key regional connectivity projects.

The Chabahar Port, specifically the Shahid Beheshti terminal, has been under India’s operational control since 2018 through India Ports Global Limited.

The port allows India to bypass Pakistan to reach Afghanistan and Central Asia, facilitating both trade and the delivery of humanitarian aid. New Delhi has invested over $120 million in port infrastructure and related development credit lines.

Plans are underway to expand the terminal’s capacity from 100,000 to 500,000 TEUs and connect it with Iran’s railway network by 2026.

By ending the Chabahar sanctions exemption, Washington has tightened the regulatory environment for international actors engaging with Iranian infrastructure projects.

Diplomatic and economic implications for India​

For India, the revocation introduces both economic and diplomatic challenges. Indian companies operating at Chabahar now face potential exposure to US penalties, which could affect cargo operations, investment plans, and future expansion.

The development also tests India’s ability to balance its growing strategic partnership with the United States against longstanding trade and strategic ties with Iran.

Strategically, Chabahar remains a key node in India’s regional infrastructure.

The port also provides a counterweight to China-backed Gwadar Port in Pakistan, strengthening India’s position in regional trade and maritime strategy.
 
US grants India six-month sanctions waiver to run Iran's Chabahar port, New Delhi says

The U.S. has granted India a six-month sanctions waiver to operate the Iranian port of Chabahar, India said on Thursday, boosting New Delhi's effort to enhance trade with Afghanistan and Central Asian countries bypassing its rival Pakistan.

India signed a 10-year contract with Iran last year to develop and operate the port and this month stepped up its ties with Taliban-run Afghanistan by reopening its embassy in Kabul that was shut after the Islamist group seized power in 2021 following the withdrawal of U.S.-led NATO forces.

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.

The port on Iran's southeastern Gulf of Oman coast was initially planned with a rail link to Afghanistan for building the landlocked country's economy through trade and reducing Kabul's dependence on the Pakistani port of Karachi.

The waiver move followed word by U.S. President Donald Trump this week that he wanted to reach a trade deal with India - signalling a thaw in relations that soured to their lowest point in decades after he doubled tariffs on Indian imports to 50% as punishment for Indian purchases of Russian oil.

Indian refiners are now cutting Russian oil imports following Washington's imposition last week of sanctions on Moscow's top two crude exporters, Rosneft and Lukoil.

"I can confirm that we have been granted an exemption for a six-month period," Indian foreign ministry spokesperson Randhir Jaiswal told a weekly news briefing, referring to the port.

He also said India was continuing talks with the Trump administration on a bilateral trade deal.

Washington had last month revoked the sanctions waiver for Chabahar, initially granted in 2018, as part of its effort to put "maximum pressure" on Iran to counter what it called the Islamic Republic's destabilising activities in support of its nuclear and ballistic missile programmes.

An Indian official, speaking on condition of anonymity, said the U.S. sanctions waiver had taken effect on Wednesday. The U.S. embassy in New Delhi did not immediately respond to a request for comment.

 
Unseen But Legal: How India Outsmarted Global Sanctions With Brilliant Maritime Strategy To Keep Russian Oil Flowing

In the wake of tightening global sanctions on Moscow, India devised a method to bring in discounted Russian crude oil without breaching international law or raising costs at home. The operation, carried out in international waters near the Gulf of Oman, saw Indian-linked tankers conduct discreet ship-to-ship (STS) transfers to secure the affordable energy supply.

Recent satellite imagery reviewed by maritime analysts showed Indian-bound crude being transferred mid-sea between tankers near the Persian Gulf, far beyond any country’s territorial limits. Valued at nearly $280 million between July and September, the shipments were traced from Russia’s northern ports and later offloaded at a western Indian terminal connected to the Guru Gobind Singh Refinery in Punjab.

This refinery, one of India’s largest, continues to play a vital role in maintaining the country’s energy independence. The pipeline network linking the coast to the heartland has kept the domestic market steady even as global oil prices fluctuated sharply due to the Ukraine war and G7 restrictions.

Maritime data platforms tracked several sanctioned vessels sailing from Murmansk, Russia, to the Gulf of Oman. Once near international waters, these ships reportedly switched off their AIS tracking systems before linking up with an India-bound carrier. Satellite images confirmed the rendezvous about 40 nautical miles east of Oman’s Sohar coast, a location often used for legitimate ship-to-ship transfers in global trade.

Sources familiar with the operation said the Indian carrier’s route was carefully designed to maintain transparency under maritime law while protecting national energy interests. The ship signalled routine voyages between India and Oman, ensuring compliance with navigation norms. Once the transfers were complete, it sailed onward to Indian shores, where the crude entered the domestic supply chain.

While drawing attention from Western agencies, the technique is viewed in Indian policy circles as an example of practical diplomacy. “India is not violating sanctions; it is securing affordable energy in a volatile market. Every nation must act in its best interest, and India has done so responsibly,” said a former energy ministry official who closely monitors crude imports.

Western sanctions, mainly imposed by the United States, the United Kingdom and the European Union, have targeted dozens of Russian vessels under the Office of Foreign Assets Control (OFAC – an agency of the U.S. Department of the Treasury) and the Office of Financial Sanctions Implementation (OFSI – a part of the UK Treasury) lists. But none of the Indian-bound shipments breached international maritime safety norms. Each transfer occurred beyond national jurisdictions, followed due safety protocols, and later entered India through legal customs channels.

By adopting this sea-based routing model, India effectively insulated itself from the volatility of overland and direct trade paths. The system also allowed refiners to keep operations running smoothly while ensuring consumers remained shielded from price shocks.

Officials have refrained from commenting publicly, but industry insiders say these transfers highlight India’s emergence as a major maritime negotiator — one capable of managing both geopolitical friction and domestic energy priorities. The use of neutral-flagged vessels and offshore handovers is not new, but the precision with which India has adapted it to modern sanctions pressure demonstrates strategic maturity.

Meanwhile, Western regulators face their own dilemmas. Although the United Kingdom and the European Union have imposed multiple sanctions on Russian-linked ships, enforcement has been uneven due to Europe’s continued dependence on energy imports. India, by contrast, has kept its operations within legal frameworks while securing supplies that power millions of homes and industries.

For India, the goal remains unchanged: affordable oil, uninterrupted flow, and sovereign decision-making in global trade. In the words of one retired naval analyst, “The world may call it shadow trade. We call it strategy.”

:kp
 
US grants India six-month sanctions waiver to run Iran's Chabahar port, New Delhi says

The U.S. has granted India a six-month sanctions waiver to operate the Iranian port of Chabahar, India said on Thursday, boosting New Delhi's effort to enhance trade with Afghanistan and Central Asian countries bypassing its rival Pakistan.

India signed a 10-year contract with Iran last year to develop and operate the port and this month stepped up its ties with Taliban-run Afghanistan by reopening its embassy in Kabul that was shut after the Islamist group seized power in 2021 following the withdrawal of U.S.-led NATO forces.

Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.

The port on Iran's southeastern Gulf of Oman coast was initially planned with a rail link to Afghanistan for building the landlocked country's economy through trade and reducing Kabul's dependence on the Pakistani port of Karachi.

The waiver move followed word by U.S. President Donald Trump this week that he wanted to reach a trade deal with India - signalling a thaw in relations that soured to their lowest point in decades after he doubled tariffs on Indian imports to 50% as punishment for Indian purchases of Russian oil.

Indian refiners are now cutting Russian oil imports following Washington's imposition last week of sanctions on Moscow's top two crude exporters, Rosneft and Lukoil.

"I can confirm that we have been granted an exemption for a six-month period," Indian foreign ministry spokesperson Randhir Jaiswal told a weekly news briefing, referring to the port.

He also said India was continuing talks with the Trump administration on a bilateral trade deal.

Washington had last month revoked the sanctions waiver for Chabahar, initially granted in 2018, as part of its effort to put "maximum pressure" on Iran to counter what it called the Islamic Republic's destabilising activities in support of its nuclear and ballistic missile programmes.

An Indian official, speaking on condition of anonymity, said the U.S. sanctions waiver had taken effect on Wednesday. The U.S. embassy in New Delhi did not immediately respond to a request for comment.

Updates the thread title now . :kp
 
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