Iran and India rush to finish construction before new round of US sanctions kick in

The project to build the port in one of Iran’s coastal cities was temporarily delayed due to fears of the US sanctions that are expected to come into effect early next month.Since the announcement of the new sanctions, the two countries have been trying to beat the clock and finish the contraction.

They are also believed to be trying to set up economic backchannels in order to continue to make payments.

India has pledged to pay $500million (£381.2million) to help build the port.

India hopes to use the berth as a way of bypassing its neighbour and rival Pakistan when it sends cargo to Afghanistan as well as Europe.

A deal was signed in 2016 by the Iranian comment Arya Banader and Indian company Global Private Ltd to work together to build the commercial port.

The contract states that India is building two terminals, or five berths, with an investment of $85million (£64.8million) for equipment.

In addition to this, India has also paid Iran a $150million (£114.3million) loan through the Export-Import Bank of India in order to develop the port.

It is expected to become fully operational next year.

Iran has been under intense economic pressure ever since the US pulled out of the Iran nuclear deal and reinstalled multiple rounds of sanctions.

President Donald Trump has announced more sanctions will be applied on November 4.

Since the sanctions have been applied, Iran has seen its economy suffer and currency devalue.

Iran’s oil production has also dwindled with Sadi Arabia and Russia having to make up for Iran’s absence in the global market.

The UK, EU, Russia and China have agreed to remain in the nuclear deal and try to set up a new payment system that would try to ease some of Iran’s economic woes.

Trump has threatened that anyone caught doing business with Iran will face harsh sanctions.