After Pompeo-Jaishankar Meet, India Gets ‘Written’ Assurance From US To Facilitate Funding Of Iran’s Chabahar Port

In a major boost for the Chabahar port project which is being developed by India in Iran's Sistan and Baluchiustan province, the United Status has given India a written assurance that will help in facilitate global banks to fund the purchase of equipment worth $85 million for the project without any sanctions, reports Hindu Businessline.

India had been unable to place orders for equipment for a long time, some as long as two years, given the US had imposed sanctions on Iran in November 2018. Owing to the sanctions, no bank was in a position of sanctioning a letter of credit for the purchase.

The latest assurance from US comes after Union External Affairs Minister S Jaishankar's visit to the US for second 2+2 ministerial dialogue during which he engaged with Secretary of State Mike Pompeo. Prior to this meeting, the US had only offered verbal assurances.

The port is a 60:40 joint venture between India Ports Global and Aria banader Iranian Port and its revenues are to be shared between Iran and India as per an agreed formula. The Phase-I of the port will remain under Indian control under a ten year lease.

The port is of great strategic importance for India for the development of regional maritime transit traffic to Afghanistan and Central Asia.