russia today - 1/16/2026 5:13:07 PM - GMT (+3 )
New Delhi has said it is in dialogue with Washington amid reports it could exit the Chabahar port project
The Indian Foreign Ministry on Friday said it “remains engaged” with Washington over Chabahar port in Iran, which has been sanctioned by the US.
The ministry was responding to a question related to a media report that it could have to give up its role developing the Chabahar port in light of US sanctions, as well as political developments in Iran.
The Chabahar project has been facing US restrictions since 2012; however in 2018 New Delhi secured a waiver to be a part of a project which was vital for expanding its trade with Russia, Central Asia and Afghanistan. The waiver was revoked last year, however New Delhi got an extension.
”As you are aware, on October 28, 2025, the US Department of the Treasury had issued a letter outlining the guidance on the conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Indian Foreign Ministry Spokesman Randhir Jaiswal said.
VIDEO | Delhi: On Chabahar Port, MEA spokesperson Randhir Jaiswal (@MEAIndia) says, “As you know, on 28 October 2025, the US Treasury Department issued a letter. In that letter, we were informed about the Unconditional Sanctions Waiver. As you are aware, the sanctions waiver we… pic.twitter.com/MLJu7Zn7Or
— Press Trust of India (@PTI_News) January 16, 2026
Earlier on Friday, the Economic Times (ET) reported that before Washington reimposed the sanctions, India transferred the funds to Iran to “liquidate its financial commitment” for developing the Shahid Beheshti terminal at Chabahar Port. India and Iran inked a ten-year deal for the development and operation of the terminal in 2024.
”When the sanctions are reimposed, transfer of funds would have become difficult. So, before the sanctions came, all the funds ($120 million) were transferred to Iran,” ET quoted an unnamed government source as saying.
Another source allegedly told ET that India has “no choice but to exit the Chabahar port, unless the sanctions are eased by the US again.”
The US temporarily waved sanctions for India after New Delhi provided plans to wind down all activities there, according to the ET report.
Chabahar, situated on the Gulf of Oman in southeastern Iran, is strategically located; it is part of the International North-South Transport Corridor (INSTC), a shipping route developed by India, Iran and Russia, as an alternative to the Suez Canal.
Iran has been gripped by riots since late December, triggered by persistent inflation and a sharp dive in the value of the Iranian rial. Tehran insists that what began as a legitimate airing of economic grievances quickly spiraled into a quasi-insurrection, with foreign agents allegedly arming violent rioters.
Earlier this month, Trump has said that any country doing business with Iran will face a 25% tariff, escalating his pressure campaign to isolate the Islamic Republic amid ongoing unrest.
read more