The US has issued a warning of potential sanctions for any country engaging in business deals with Iran, just hours after India signed a 10-year contract to operate a port with Tehran.
Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran signed a long-term deal for the development of Chabahar Port on 13 May, BBC reported citing India's shipping ministry.
"Any entity or individual considering business deals with Iran should be aware of the potential risks and the possibility of facing sanctions," commented US State Department Deputy Spokesperson Vedant Patel in response to questions about the port deal.
India's shipping minister hailed it as a "historic moment in India-Iran ties."
However, this move may not be well-received by the US, which has imposed sanctions on over 600 Iranian-related entities in the past three years, according to a BBC report.
India had initially agreed to develop the port in 2016, and this new deal aims to further its development.
Under the agreement, IPGL will invest about $120 million, with an additional $250 million in financing, bringing the total contract value to $370 million, stated Iran's Minister of Roads and Urban Development Mehrdad Bazrpash.
India's Foreign Minister S. Jaishankar expressed that the deal "will pave the way for larger investments in the port.
