India secures six-month US sanctions exemption for Chabahar Port operations
India has obtained a six-month sanctions waiver from the United States for the Chabahar Port in Iran, allowing continued work at the strategic facility until April 2026 following weeks of uncertainty after Washington revoked the permit in September.
‘I can confirm that we have been granted exemption for a six-month period on the American sanctions that were applicable on Chabahar,’ Ministry of External Affairs spokesperson Randhir Jaiswal said at his regular press conference, adding the exemption became effective 29 October.
There was no immediate confirmation from the United States, where a government closure has stopped or delayed such notices for several weeks. The US Treasury Department did not immediately respond to an email for confirmation or comment.
The extension allows Indian Ports Global Limited to continue operating the Shahid Beheshti terminal through its wholly owned subsidiary, India Ports Global Chabahar Free Zone. Operations had been halted since the US State Department revoked the longstanding exemption on 16 September, ordering work to be stopped by the end of that month.
The US originally granted the exemption in 2018 under then-Secretary of State Mike Pompeo, who said it supported Afghanistan’s economic growth and the US-India partnership. However, the State Department’s September decision reflected President Donald Trump’s renewed ‘maximum pressure’ campaign against Iran and Washington’s changed posture toward Afghanistan following the Taliban’s 2021 takeover of Kabul.
The revocation had created mandatory sanctions exposure covering anyone determined to operate a port in Iran or provide significant support to sanctioned Iranian entities under the Iran Freedom and Counter-Proliferation Act. Legal experts warned that Indian individuals and corporate entities connected to Chabahar operations risked exposure to sanctions that could affect their access to US markets and financial systems.
The extension ‘allows India to continue its operations of running and operating the Chabahar Port. These operations are critical to India as it connects India to Afghanistan and Central Asia, while bypassing Pakistan, giving it access to regional trade and energy,’ said Ameeta Duggal, partner at legal firm DGS Associates in New Delhi.
The port serves as a key node in the International North-South Transport Corridor linking India with Russia and Europe.
India signed a ten-year port operation agreement with Iran in May 2025, with Indian Ports Global Limited committing $120 million in investment and pledging an additional $250 million credit line for infrastructure development at the terminal.
India has utilised Chabahar for strategic purposes, shipping 20,000 tonnes of wheat aid to Afghanistan in 2023 and delivering medical supplies during the Covid-19 pandemic. The Ministry of External Affairs allocated INR 1 billion, about $11.3 million, for the project in the 2024-25 budget.
The six-month extension provides temporary relief but leaves long-term uncertainty for India’s operations at the port.
‘We are witnessing a constant shift in the US foreign policy, and this unpredictability may impact India’s operations in the long term,’ Duggal said. ‘Yes, an extension has been secured for the time being but what the future holds is dependent on multiple factors.’
The exemption will require renewal in April 2026, and any future extension would need the Secretary of State to justify to Congress that it is ‘vital to US national security’.
