US exempts India from sanctions for development of Iran’s Chabahar

The sanctions cover Iran's banking and energy sectors and reinstate penalties for countries and companies in Europe, Asia and elsewhere that do not halt Iranian oil imports.

Published: 07th November 2018 02:36 PM  |   Last Updated: 08th November 2018 04:18 AM   |  A+A-

Chabahar port

An image of the Chabahar port. (Photo | PTI)

By Express News Service

NEW DELHI: The United States has exempted India from certain sanctions for the development of the strategically located  Chabahar Port ​in Iran, along with the construction of the railway line connecting it with Afghanistan.The decision by the Trump administration, which a day earlier imposed the toughest-ever sanctions on Iran, is seen as a recognition by Washington of India’s role in development of the port on the Gulf of Oman, which is of immense strategic importance for the development of war-torn Afghanistan.

“After extensive consideration, the secretary (of state) has provided for an exception from imposition of certain sanctions under the Iran Freedom and Counter-Proliferation Act of 2012, with respect to the development of Chabahar port, construction of an associated railway and for shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as the country’s continued imports of Iranian petroleum products,” a State Department spokesperson told PTI. The US on Monday imposed “the toughest-ever” sanctions on a Iran aimed at altering the regime’s “behaviour”.

The sanctions cover Iran’s banking and energy sectors and reinstate penalties for countries and companies around the world that do not halt Iranian oil imports. However, Secretary of State Mike Pompeo said that eight countries—India, China, Italy, Greece, Japan, South Korea, Taiwan and Turkey—were temporarily allowed to continue buying Iranian oil as they showed “significant reduction” in oil purchase from the country.

To a question on the fate of Chabahar port after the US reimposed all its sanctions on Iran, the spokesperson said, “This exception relates to reconstruction assistance and economic development for Afghanistan. These activities are vital for the ongoing support of Afghanistan’s growth and humanitarian relief.”     

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