US warns India over Iran deal

RT
Tue, 14 May 2024 15:49 UTC

© Kevin Dietsch/Getty Images

U.S. Secretary of State Antony Blinken (R) and India's External Affairs Minister Subrahmanyam Jaishankar hold a joint press availability at the State Department on September 27, 2022 in Washington, DC.

The White House brought up the threat of sanctions while commenting on New Delhi's latest port agreement with Tehran

Hours after New Delhi and Tehran announced a ten-year deal for operating and managing Iran's strategically-located Chabahar Port, Washington issued a veiled warning - reminding India that dealing with the Middle Eastern nation comes with a potent risk.

"Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions," Vedant Patel, the principal deputy spokesperson for the US State Department, said, responding to a media query on the deal. "US sanctions on Iran remain in place and we'll continue to enforce them," he added.

Since the 1979 seizure of the US Embassy in Tehran, the US has enacted restrictions on Iran under various legal frameworks. Recently, the administration of US President Joe Biden introduced further sanctions on Iran in reaction to its missile and drone assault on Israel in retaliation for the lethal bombing of Iran's consulate in Damascus, Syria.

Washington's reaction came after Indian Ports Minister Sarbananda Sonowal and Iranian Minister of Roads and Urban Development Mehrdad Bazrpash signed a deal on Monday, which has been in the works for at least three years and is vital for New Delhi as it provides it easier access to Afghanistan, Central Asia, and Russia.

India's operation of the strategic port will "also be significant in providing humanitarian aid, opening new vistas in fostering peace and stability in the region," according to New Delhi.

Iran's first deepwater port, Chabahar is also a strategic hub for the upcoming International North-South Transport Corridor (INSTC), developed by New Delhi, Tehran, and Moscow.

The INSTC is projected to reduce transit times between Mumbai, India and St. Petersburg, Russia by 40%, shortening average trips and helping cut down on freight costs drastically, according to data. It will also become an alternative to the Gulf of Aden-Suez Canal route, which has remained unsafe since the outbreak of the war in Gaza.

Comment:
On the same topic, from the same source:

13 May, 2024 13:17
India and Iran sign long-term port deal
South Asian nation will operate Iran's strategic Chabahar Port on the Gulf of Oman, connecting it with Central Asia and Russia

[...]
According to the contract, state-run India Global Ports Limited (IGPL) will assume operations of general cargo and container terminals at one of Chabahar's two facilities, the Shahid Beheshti port. This one lies to the west of Iran's border with Pakistan and not far from that country's port of Gwadar, used as a hub in China's Belt and Road Initiative.

By inking the long-term deal, which comes after three years of negotiations, New Delhi effectively counterbalances China's presence in the region, reports suggest. It has also offered Tehran a rupee-denominated credit line equivalent to $250 million for infrastructure projects related to the port's development.
[...]
Chabahar is also seen as a gateway for unlocking India's trade potential with Central Asia, Russia and European countries. The port is a part of the INSTC multi-modal, north-south trade route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and Azerbaijan, and on to northern Europe.

This trade corridor originates in Mumbai and passes through Bandar Abbas, Bandar-e-Anzali, and Chabahar, then crosses the Caspian Sea to reach Astrakhan in southern Russia, linking Moscow and St Petersburg via rail and road connections. Data shows that the INSTC is projected to reduce transit times by 40%, shortening average trips from 45-60 days to 25-30 days. It is also likely to decrease freight costs by 30% and to emerge as a commercially viable alternative to the Suez Canal trade link between Asia and Europe.

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