New Delhi continues its engagement with Washington on broader economic issues

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

 It is noteworthy that 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. 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 American waiver move

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.

India was continuing talks

"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.

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The sanctions waiver for Chabahar

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.

Agreement for the Shahid Beheshti terminal

Last year, India signed a 10-year operating agreement for the Shahid Beheshti terminal with Iran’s Ports and Maritime Organization through the state-run India Ports Global Ltd (IPGL). The deal includes planned investments to equip and develop the terminal.  The six-month waiver follows Washington’s decision last month to revoke an earlier carve-out covering Chabahar, which had created uncertainty about India’s ability to continue its activities at the terminal.

The possibility of continuing operations

The MEA confirmation indicates that operations can continue while the exemption remains in effect.  “Exemption has been granted for six months,” Jaiswal said, adding that New Delhi continues its engagement with Washington on broader economic issues mentioned during the briefing.

The U.S. , India , sanctions waiver ,  Shahid Beheshti terminal ,Iranian port of Chabahar ,Randhir Jaiswal ,The MEA