Fresh set of problems for India as Iran demands payment in euros

A bank guarantee in euros is impossible for India to offer since it will have to be made through a foreign bank

A fresh set of problems is likely to delay the handover of two terminals at Chabahar port by Iran to India. Iran has insisted that India should provide it a euro-denominated bank guarantee to operate the project. 

With international banking channels frozen with respect to Iran, it is a big challenge for India to negotiate for getting the port into commercial operations on a sustainable scale. In early September, the visiting Iranian Roads and Urban Development Minister, Abbas Ahmad Akhoundi, had told the media that he expected the handover to happen within a month. Chabahar is India’s first ever venture