Amid reports suggesting that India may exit Iran’s Chabahar port project due to pressure from the United States, the government on Friday clarified that it remains in close engagement with Washington to operationalise the sanctions waiver granted for the strategic port.
Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said the US Department of the Treasury had issued a letter on October 28, 2025, outlining guidance on a conditional sanctions waiver valid until April 26, 2026.
“As you are aware, on October 28, 2025, the US Department of Treasury issued a letter outlining the guidance on the conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Jaiswal said.
The clarification comes against the backdrop of the US State Department’s decision in September to revoke the sanctions exception granted in 2018 for the Chabahar port, a move aimed at further isolating Iran. The revocation, initially scheduled to take effect on September 29, was later extended, allowing continued limited engagement.
Chabahar port holds strategic significance for India as it provides access to Afghanistan and Central Asia while bypassing Pakistan. India has committed a Line of Credit of $250 million, in rupee equivalent, towards the development of the port.
However, India’s involvement has faced fresh uncertainty following the US announcement earlier this week that it would impose a 25 per cent tariff on countries conducting business with Iran, further complicating the geopolitical and economic environment surrounding the project.
Despite these challenges, the Chabahar port has handled around 10 million tonnes of bulk and general cargo since 2018, underlining its growing importance as a regional trade and connectivity hub.