US exempts India from imposition of sanctions development of Chabahar Port in Iran

United States has exempted India from imposition of certain sanctions for development of strategically-located Chabahar port in Iran, along with construction of railway line connecting it with landlocked Afghanistan. The decision comes after US imposed toughest ever sanctions on Iran under Iran Freedom and Counter-Proliferation Act, 2012.

Key Facts

The exemptions to India are with respect to development of Chabahar port, construction of associated railway and for shipment of non-sanctionable goods through port for Afghanistan’s use, as well as the country’s continued imports of Iranian petroleum products.
This exception relates to reconstruction assistance and economic development for Afghanistan. These activities are vital for ongoing support of Afghanistan’s growth and humanitarian relief. It is also part US President Donald Trump’s South Asia strategy which underscores US’s ongoing support of Afghanistan’s economic growth and development as well as close partnership with India. This strategy states that India has major role in bringing peace and development in Afghanistan.

Background

US has imposed toughest ever sanctions on defiant Iran aimed at altering the Iranian regime’s “behaviour”. 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. However, 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 Iran.


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