India is planning to transfer its stake in Iran’s Chabahar Port to an Iranian company, according to a report by Business Standard. The move comes as the U.S. sanctions waiver allowing India’s investment and use of the port is set to expire on April 26, 2026. To avoid potential sanctions risks, India is taking strategic steps before the waiver period ends.

The report adds that India is considering an interim arrangement under which an Iranian operator will manage the port during the sanctions period. Once sanctions are eased or lifted, India may resume its operations at the facility. This approach is based on a mutual understanding between the two sides.

India Ports Global Chabahar Free Zone, a subsidiary of India Ports Global Limited, had been managing the port since December 24, 2018. The current plan reflects India’s effort to maintain its long-term strategic interests while navigating international restrictions.