Iran has expanded relations with India within BRICS+ and the Shanghai Cooperation Organisation (SCO) formats. Iranian Foreign Minister Hossein Amir-Abdollahian announced this following a meeting with Indian Minister for Port Infrastructure, Shipping and Inland Waterways Development Sarbananda Sonowal. This follows the news that India and Iran have signed a 10-year contract to develop and operate the Iranian port of Chabahar, which New Delhi envisages as a strategic trade route to landlocked Central Asian republics, allowing it to bypass rival Pakistan.
India said the deal has unlocked new avenues for trade. But the United States, whose ties with Iran have worsened, has warned of the potential risk of sanctions on anyone considering business deals with Tehran. After India and Iran signed the 10-year deal, U.S. State Department spokesperson, Vedant Patel, told reporters that U.S. sanctions on Iran remain in place, and that Washington will continue to enforce them. “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,” he said.
Analysts in New Delhi say the threat of sanctions could dampen hopes of turning the port into a trading hub. The agreement was signed Monday in Iran’s Chabahar town by India’s Shipping Minister, Sarbananda Sonawal and Iran’s urban development minister Mehrdad Bazrpash. “Chabahar Port’s significance transcends its role as a mere conduit between India and Iran. it serves as a vital trade artery connecting India with Afghanistan and Central Asian countries,” Sonawal said after the signing.
Minister Hossein Amir-Abdollahian responded:
“Our approach to relations with India is strategic and we are ready to expand our cooperation with India bilaterally and multilaterally as well as within the BRICS and SCO frameworks”. He says India is regarded as a reliable partner, emphasising the importance of establishing strong relations with India.
