US Grants India Six-Month Sanctions Waiver On Iran’s Chabahar port, MEA Confirms Amid Strategic Balancing With Russia

US Grants India Six-Month Sanctions Waiver On Iran’s Chabahar port, MEA Confirms Amid Strategic Balancing With Russia

This Chabahar port is crucial to India’s interests as it grants the country a gateway into resource-rich Central Asia by bypassing Pakistan. However, some diplomats believe that the move may be of “limited value” given the short time period of the sanctions waiver for India and more to do with President Trump’s personal agenda.

Ashwin AhmadUpdated: Friday, October 31, 2025, 10:08 AM IST
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India is being given a six month sanction waiver from the US on the Chabahar port, Ministry of External Affairs spokesperson Randhir Jaiswal revealed on Thursday. | X @TweetsByFACT

New Delhi: India is being given a six month sanction waiver from the US on the Chabahar port, Ministry of External Affairs spokesperson Randhir Jaiswal revealed on Thursday. He confirmed at a media briefing that recent reports that had been circulating on this were true. He added that the exemption on the port in south eastern Iran had been granted a few days ago, though he could not confirm the exact date.

This Chabahar port is crucial to India’s interests as it grants the country a gateway into resource-rich Central Asia by bypassing Pakistan. However, some diplomats believe that the move may be of “limited value” given the short time period of the sanctions waiver for India and more to do with President Trump’s personal agenda.

Former Ambassador and West Asia expert Talmiz Ahmad said. “My own understanding would be that the six month grace period has been given to enable Indian companies to slowly reduce oil imports from Russia and make it zero. We had done the same in 2019 when we reduced oil exports to Iran to zero, for which we received relief on sanctions on the port. The same gameplan is being followed by the US with regard to Russia.”

Earlier, the sanctions exemption on operations at Iran's Chabahar port, which previously allowed for its development without immediate risk of US penalties, was revoked by the United States, effective September 29, 2025. This decision forced individuals and entities, including India Ports Global Limited (IPGL), to cease operations within a 45-day grace period or face potential US sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA)The implementation of the exemption once again will be a boon for India as it can resume work on the Chabahar port but will also reduce tariffs.

“Through this action the tariffs on Indian will be reduced 25 %, from 50%, it will become 25%. The other 25% was a penal tariff, additional tariff only on account of Russian oil. And Trump will be able to announce to his people that I have one more victory,” said Ahmad.

The US has been issuing sanction exemptions on Chabahar for a six to nine month since Obama's time. They have never waived it away fully since then.

The announcement by the MEA spokesperson comes after months of pressure by Washington to get New Delhi to stop buying Russian oil. India will have to navigate its interests as it looks to close a trade deal with the US but also is preparing for a visit by President Putin. Putin is scheduled to arrive in Delhi for the annual summit on December 5.

Asked if the issue of Russian oil would be discussed during Putin’s visit and where the India-Russia relationship stood at the moment, the MEA spokesperson said. “The India-Russia relationship is an important relationship. We have multifaceted cooperation, and both sides are working further to enhance their engagement in several areas, in space and technology, trade, and other issues. We will continue to work on areas that we have mutually agreed to.”

While India manages the diplomatic balance between the US and Russia, it is also navigating its closer relationship with Afghanistan. Recent truce talks between Pakistan and Afghanistan were called off, with Pakistan Defence Minister Khawaja Asif accusing New Delhi of fighting a “proxy war” by using the Taliban as its “puppet.”

Responding to the Pakistan defence minister’s claims, Jaiswal said that Pakistan was “infuriated with Afghanistan exercising sovereignty over its own territories, and Pakistan seems to think that it has the right to carry out cross-border terrorism with impunity. Its neighbours find it unacceptable. India remains committed to the sovereignty, territorial integrity, and independence of Afghanistan."

Afghanistan remains crucial to India not just in terms of fighting terror groups in the region but also by being the link through which New Delhi can access the Chabahar port. India recently upped its relationship with the acting Taliban government by turning the technical embassy in Kabul into a full-fledged embassy. The government also recently provided aid to Afghanistan in September after an earthquake in the Kunar province, and what is interesting is Kabul seems to be taking a leaf out of New Delhi’s book by looking to set up a dam on the Kunar River, thereby reducing water to Pakistan.

Jaiswal confirmed that New Delhi stood ready to support Kabul. Asked whether New Delhi would help fund construction of the Kunar dam, he elaborated. “We had the Foreign Minister of Afghanistan. He visited India recently; as part of the visit, we had issued a joint statement between both countries. This particular joint statement clearly emphasises that India stands ready to support all efforts of Afghanistan that are directed towards sustainable management of water resources, including hydroelectric projects.”

“You also would know that, between the two countries, there has been a long history of cooperation on water matters. The Salma Dam, for example, is a perfect example of this cooperation, which is today called India-Afghanistan Friendship Dam,” he added.

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