US exempts India from certain sanctions for development of Chabahar port in Iran

Note4students

Mains Paper 2: IR | Bilateral, regional & global groupings & agreements involving India &/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: South Asian Strategy

Mains level: Impact of US-Iran strain on India’s developmental initiatives in Afghanistan


News

  • The United States has exempted India from the imposition of certain sanctions for the development of the strategically-located Chabahar port in Iran.

Details of the Exemption

  1. After extensive consideration, US has provided for an exception from imposition of certain sanctions under the Iran Freedom and Counter-Proliferation Act of 2012,.
  2. It included development of Chabahar port, construction of an associated railway and for shipment of non-sanctionable goods through the port for Afghanistan’s use, as well as imports of Iranian petroleum products.
  3. Eight countries namely India, China, Italy, Greece, Japan, South Korea, Taiwan and Turkey were temporarily allowed to continue buying Iranian oil.
  4. They have shown a “significant reduction” in oil purchase from the Persian Gulf country.

Significance

  1. The decision signifies India’s role in development of the port on the Gulf of Oman, which is of immense strategic importance for the development of war-torn Afghanistan.
  2. This exception relates to reconstruction assistance and economic development for Afghanistan.
  3. These activities are vital for the ongoing support of Afghanistan’s growth and humanitarian relief.

Trump’s South Asia Strategy

  1. US decision to give India an exemption from the imposition of certain sanctions for the development of the port is driven by the South Asian strategy, which was announced by Trump in August.
  2. It states that India has a major role in bringing peace and development in Afghanistan.
  3. The South Asia strategy underscores our ongoing support of Afghanistan’s economic growth and development as well as its close partnership with India.
Foreign Policy Watch: India-United States
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