India Engages US on Chabahar Port Sanctions Waiver Amid Tariff Threat | Quick Digest
India is actively engaging with the US to ensure continuity at the strategically vital Chabahar Port, as a sanctions waiver expires in April 2026. New Delhi is exploring options, including creating a new entity, to navigate fresh US tariffs and safeguard its regional connectivity ambitions.
India actively seeking extension of Chabahar port sanctions waiver from US.
Current US conditional sanctions waiver for Chabahar port valid until April 26, 2026.
India exploring new entity to operate Shahid Beheshti terminal, reducing sanction exposure.
MEA denies reports of India completely exiting Chabahar project.
US President Donald Trump announced 25% tariff on countries trading with Iran.
Chabahar is crucial for India's connectivity to Afghanistan and Central Asia.
India is actively engaged in discussions with the United States to secure an extension for the conditional sanctions waiver related to its operations at Iran's Chabahar Port, which is set to expire on April 26, 2026. This diplomatic push comes amid increasing pressure from the US, including a recent announcement by US President Donald Trump on January 12, 2026, threatening a 25% tariff on any country conducting business with Iran.
India views the Chabahar Port as a strategic gateway for trade and connectivity to Afghanistan and Central Asian nations, bypassing Pakistan, and it is also a vital component of the International North-South Transport Corridor (INSTC). To reduce its direct exposure to US punitive measures, India is reportedly exploring several options, including the formation of a new entity that would operate the Shahid Beheshti terminal at Chabahar without being directly subject to sanctions. It has also been reported that Indian government officials on the board of India Ports Global Limited (IPGL), the state-run entity managing the port, have resigned to insulate themselves from potential sanctions, and India has transferred its committed $120 million for the port's development to Iran.
While some reports initially suggested India might be winding down or exiting the project, the Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal explicitly denied these claims, reaffirming India's ongoing engagement with the US to work out a viable arrangement. The situation highlights India's complex diplomatic challenge of balancing its strategic interests in Iran with its relationship with the US.
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