New U.S. sanctions won’t hit Chabahar port project, says Iran

The News

• In the light of possible new sanctions against Tehran, Iran has assured that India’s Chabahar project will not be affected.

News Summary

• The United States is likely to impose new sanctions on Iran.
• Regardless of U.S. policy, the Iran government has made it clear it will not change its commitment to the Chabahar project and special economic zone.
• The port is seen as a major connectivity project that will help India bypass by Pakistan, in order to trade with Afghanistan and Central Asia.
• In 2016, before the U.S. elections, Japan had evinced interest in partnering with India on the port project, which is part of a trilateral India-Iran-Afghanistan transit trade agreement.
• But more recent reports indicate Japan is moving with more caution on the project.

Chabahar Port

• It is a seaport in Chabahar located in southeastern Iran, in the Gulf of Oman.
• The Chabahar port in the Sistan-Balochistan province on the energy-rich nation’s southern coast lies outside the Persian Gulf and is easily accessed from India’s western coast bypassing Pakistan.
• It is the only Iranian port with direct access to the ocean.
• The route will provide connectivity to Afghanistan and Central Asia.
• It is a $20-billion investment for India and is seen as a rival to the China-Pakistan Economic Corridor’s Gwadar port.

Development of Chabahar port

• In 2003, India and Iran agreed to develop the Chabahar port to allow New Delhi to reach markets in Afghanistan and landlocked Central Asia. 
• The project was delayed due to international sanctions on Iran over its suspected nuclear programme and India’s focus on concluding a civil nuclear pact with the US. 
• In 2013, the project was rekindled after US, UK, France, Russia, China and Germany reached an interim agreement with Iran on its nuclear programme and some sanctions were lifted.
• In 2016, India, Iran and Afghanistan signed a trilateral trade pact when Prime Minister of India visited Tehran to enable the movement of goods from Chabahar to Afghanistan.

Why is it so important for India? 

• The port will make way for India to bypass Pakistan in transporting goods to Afghanistan using a sea­land route. 
• At present, Pakistan does not allow India to transport through its territory to Afghanistan. 
• This will also give momentum to the International North­South Transport Corridor of which both are initial signatories along with Russia.

• It would counter Chinese presence in the Arabian sea through the support to Pakistan in developing Gwadar port. 
• It can be used to station security vessels for merchant ships off the African coast apart from giving the country a foothold in the western Arabian Sea, which is important as many of its energy imports pass through the route.