Diplomatic win: India gets six-month exemption from US sanctions on Chabahar port – why it’s critical

NEW DELHI: The ministry of external affairs on Thursday confirmed that US has granted India a six-month exemption from American sanctions on the Chabahar port.This is a major diplomatic win for India amid negotiations between India and the US over finalising a trade deal.“We continue to remain engaged with the US side on finalising the trade deal. Both sides are continuing to hold discussions. For any further update, I would refer you to the Ministry of Commerce,” Randhir Jaiswal, MEA spokesperson said.Last year, India signed a 10-year contract with Iran in which India Ports Global Ltd (IPGL) promised $370 million of investments in the port.During Trump’s first term as US president, the American administration in 2018 also allowed Indian companies to develop the port. That exemption was issued amid US-imposed unilateral sanctions on Iran.Jaiswal, during the weekly press briefing, also added that India is analysing implications of US sanctions on Russian oil companies.“We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” he said. “Our position on the larger question of energy sourcing is well-known. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people,” Jaiswal added. Chabahar port plays a crucial role in India’s regional connectivity strategy by providing access to Afghanistan and Central Asia-Eastern Russia.