India Plans Port Stake Shift to Avoid US Sanctions

The Government of India is considering divesting the stake held by India Ports Global in the Chabahar Port free zone to an Iranian entity. This move aims to protect Indian investments from United States sanctions following a notification from the U.S. Treasury Department that the port's sanctions waiver expires on April 26, 2026. The U.S. decision to end the waiver is linked to the ongoing war in the Gulf and follows a February 2025 order from the U.S. Department of State to rescind economic relief for Iran.

Under the proposed plan, the Iranian entity would guarantee the transfer of the stake back to India once sanctions are lifted. India Ports Global Limited previously invested nearly $120 million and signed a 10-year agreement to operate the Shahid Beheshti Terminal in partnership with the Iranian Ports and Maritime Organisation.

India views the facility as a strategic gateway for the International North-South Transport Corridor and a critical counter-balance to China's presence at the nearby Gwadar Port. The port also serves as a channel for providing emergency assistance to Afghanistan. India continues to negotiate with both the United States and Iran to maintain its financial ties to the facility.