Development of Chabahar Port Exempted from US Sanctions

On Tuesday, November 6, the spokesperson for the US State Department announced that the development of Iran's Chabahar Port is exempt from US sanctions. India is responsible for the development of Chabahar Port in Sistan and Baluchestan province and, along with Afghanistan, hopes to bypass Pakistan and use a shorter route for trade. This trade also includes Central Asian countries. Heather Nauert, the US State Department spokesperson, stated that Secretary of State Mike Pompeo announced that the Chabahar project is exempt from sanctions due to its contribution to Afghanistan's economic development. Afghanistan hopes that by launching Chabahar Port, it can import its necessary goods without using Pakistani territory. India, which has tense relations and territorial issues with Pakistan, has taken on the development of Chabahar Port and hopes to expand its trade relations with Afghanistan and Central Asian countries without needing Pakistan. A month after the US withdrawal from the JCPOA in May of this year, the Indian government announced that Chabahar Port would be operational by next year and hopes that US sanctions will not hinder its development. The US State Department spokesperson also mentioned that the Chabahar railway project to Afghanistan is also exempt from sanctions for the transfer of 'permitted' goods such as food and medicine. The agreement to establish the railway was signed between Iran, India, and Afghanistan in June 2016. This railway starts from Chabahar and reaches the Afghan border (Zaranj) after passing through Zahedan. Note: Is the Chabahar project a factor in tensions between India and China? Aside from the issues India and Afghanistan have with Pakistan, the distance for transporting goods from India to Afghanistan via current routes like the Karachi port in Pakistan or the Bandar Abbas port in Iran is greater, and consequently, the cost of transporting goods is also higher. Afghan officials had previously announced that the cost of transporting each container of goods from the Chabahar route to Afghanistan would be about $500 to $1,000 less than the routes through Karachi or Bandar Abbas. Late last year, Tolo News reported that the Iranian government had issued operating licenses for 165 Afghan companies to invest and operate in the free trade zone of Chabahar Port. India had previously spent about $100 million on constructing a 220-kilometer road in western Afghanistan to connect to Chabahar Port and was expected to invest $500 million in developing Chabahar Port, part of which has already been done. In this context, there is a 'significant presence' of Afghan investors in Chabahar, and Iran has invited Pakistan to join India in the Chabahar project. Note: Is the Chabahar project a factor in tensions between India and China? 'Suspension' of the airport construction project for Chabahar. What news is there about the 'development of Chabahar Port'? Severe government repression and the risk of 'underground' protests. What doctors and eyewitnesses recount about the injured in the protests. The limitations of China-Iran relations becoming apparent amid protests.