US sanctions on Iran risk vital Afghanistan trade project


(MENAFN) US president's decision to withdraw from the Iran nuclear agreement and re-impose sanctions on Tehran threatens to disrupt a project to help build Afghanistan's economy, risking a key goal of the US strategy to end America's longest war.

The Chabahar Port complex in Iran, which is backed by India, is being developed as part of a new transportation corridor for land-locked Afghanistan that could potentially open the way for millions of dollars in trade and cut its dependence on Pakistan.

Meanwhile, Trump's decision to re-impose sanctions on Iran and penalize financial institutions for doing business with Tehran is clouding Chabahar's viability as banks pull back from financing, worried they might be hit with penalties.

A senior Indian diplomat said: "President Trump's decision has brought us back to the drawing board and we will have to renegotiate terms and conditions on using Chabahar, it is a route that can change the way India-Iran-Afghanistan do business, but for now everything is in a state of uncertainty."

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