U.S. exemption from sanctions to Chabahar port work

Activities related to the development of the Chabahar port in Iran will be exempt from U.S. sanctions that kicked in recently.

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Why is it in news?

  • Activities related to the development of the Chabahar port in Iran will be exempt from U.S. sanctions that kicked in recently.
  • Sanctions kicked off following the 180-day cool-off period after the U.S. withdrew from the Joint Comprehensive Plan of Action (JCPOA or the ‘Iran Deal’) in May 2018.
  • This waiver will bring some measure of relief to India which had been discussing a sanctions exemption for Chabahar.

More in news

  • India has committed $500 million to the project and $2 billion to build a railway line from Chabahar to Hajigaj in Afghanistan.
  • Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) – It is the law under which sanctions on Iran were imposed by former U.S. President Barack Obama.
  • Sanctions have implications for non-U.S. companies working with Iran in various sectors, including shipping, shipbuilding, energy and insurance.
  • U.S. President Donald Trump’s South Asia strategy was focussed on economic growth for Afghanistan and a “close partnership” with India.
  • U.S. seeks to maintain a close relationship with both countries as it pursues a “policy of maximum pressure” against Iran.

Source

The Hindu