09:46 GMT02 December 2020
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    The new port memorandum signed by India and Iran on Wednesday opens the entire region to trade and cooperation, an Iranian expert told Sputnik.

    India's new Chabahar port deal with Iran will become a hub of economic activity which will grant India economic access to Russia, Central Asia and Afghanistan, Iranian analyst and vice-president of the Iran and Eurasia Research Center (IRAS) Mandana Tishyar told Sputnik.

    India signed a memorandum of understanding with Iran on Wednesday which would allow it to build a port in Iran. The agreement took place despite US warnings against deals with Iran before the nuclear agreement is reached before the deadline on June 30.

    "This memorandum was signed by the two countries' governments and not individual companies, so this project will be completed. The design and development of this port are not in the list of entities which fell under Western sanctions," Tishyar told Sputnik.

    According to Tishyar, the port will benefit not only Iran, but also the entire region as part of Russia, India and Iran's "North-South" transport corridor project. The project is parallel to China's East-West Silk Road.

    Russian President Vladimir Putin (left) and Indian Prime Minister Narendra Modi attending the World Diamond Conference in the Vigyan Bhawan Palace, New Delhi
    © Sputnik / Michael Klimentyev
    In April, China promised India's neighbor Pakistan over $46 billion in investment and development deals as part of the Pakistan-China Economic Corridor.

    "The Chabahar port development could really help our countries strengthen and develop a strategic trade partnership," Tishyar said.

    India plans on investing over $85 million in Iran new port's construction.


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