India has signed a 10-year contract with Iran for the development and operation of the Iranian port of Chabahar, where Armenia plans to open an operational point.
The signing of the contract was announced by the Indian government on Monday, May 13, emphasizing that this will strengthen relations with the strategically important Middle Eastern country, Reuters reports.
Investments totaling $370 million
According to The Economic Times, the agreement is for a ten-year period and was signed by India Ports Global Ltd. in partnership with the Iranian maritime organization.
This event is seen as a significant geopolitical step towards Iran, which will have a substantial impact on the region. The partnership will also give new impetus to India's relations with Afghanistan, Central Asia, and Eurasia.
Under the agreement, IPGL will invest approximately $120 million, with an additional $250 million in financing allocated. According to Iranian Minister of Transport and Urban Development Mehrdad Bazrpash, this will bring the total value of the contract to $370 million.
Armenia, as its government has repeatedly stated, is negotiating joining the Chabahar port and opening an operational point there.
This will allow the country to gain access to India, the Gulf states, and the Persian Gulf, and carve out its niche amid tectonic shifts in global logistics chains.
Yerevan and Tehran have agreed to waive road tolls
Recently, Iranian Ambassador to Yerevan Mehdi Sobhani expressed Armenia's interest in opening a representation in the Chabahar port, which, he said, will contribute to the development of trade with India, Iran, and South Asian countries.
At the end of 2023, the Iranian side expressed readiness to provide Armenian companies with access and favorable conditions in its ports. The parties are preparing to sign a memorandum of understanding on these issues, after which Iran will submit proposals on the terms of port operations.
Practical discussions on which ports can expect preferential treatment for Armenian goods will then begin, said the trade attaché of Armenia in Iran, Vardan Kostanyan.
BMG reminds that at the end of 2023, Yerevan and Tehran agreed to waive road tolls for trucks. These tolls are levied when crossing the border.
According to the Statistical Committee of Armenia, in 2023, Armenia's trade turnover with Iran amounted to $692,496.8 thousand, decreasing by 2.5% compared to 2022.
