What this agreement covers.
Proposed PTA under exploration
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Proposed PTA under exploration
Both parties โ complex sanctions context
Aggregate trade volume among parties: USD 2.5B
| Risk | Assessment | Mitigation |
|---|---|---|
| USA secondary sanctions on Iran create third-party risk for Indian banks | High โ complex sanctions compliance required | Work through sanctioned-exempt Chabahar arrangement and INR payment mechanisms; verify US OFAC exclusions |
| Iran sanctions affect insurance, shipping, and banking for India-Iran trade | High โ major logistics and financing constraints | Use Indian-flag vessels and Indian insurance where possible; Indian bank rupee payment mechanisms |
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