India is considering a temporary transfer of its stake in Iran’s Chabahar Port to a local Iranian entity as it navigates the looming risk of renewed US sanctions.
According to reports, the move is being explored ahead of the expiry of a US sanctions waiver, which currently allows India to operate at the strategically important port. Once this waiver ends, Indian entities involved in the project could face financial and legal exposure to sanctions.
The proposal involves India Ports Global Ltd (IPGL) divesting its holding in the Chabahar Free Zone project to an Iranian partner. This would allow operations to continue under a local entity while reducing direct sanction risks for Indian stakeholders.
Importantly, the arrangement is expected to be temporary in nature. Discussions include a provision that the stake could be returned to India once sanctions are eased or lifted, ensuring that India retains its long-term strategic interest in the project.
Chabahar Port holds significant geopolitical and economic importance for India. It provides a direct maritime route to Afghanistan and Central Asia, bypassing Pakistan, and is a key part of the International North-South Transport Corridor (INSTC) aimed at improving connectivity with Russia and Europe.
India has already invested around $120 million in the port and signed a 10-year agreement in 2024 to operate a terminal there, underlining its long-term commitment.
Officials indicate that the government is also in talks with both the United States and Iran to find a workable solution that protects India’s strategic interests while complying with evolving geopolitical constraints.
Overall, the potential stake transfer reflects a strategic balancing act allowing India to maintain its foothold in a critical international trade corridor while mitigating immediate risks posed by sanctions.
