NEW DELHI – India is working to make sure Chabahar Port in Iran isoperational by 2019, the Indian government said in a statement on Friday.

This comes despite a threat of renewed US sanctions against Tehran.

The Indian-backed Chabahar port complex in Iran is being developed as partof a new transportation corridor for land-locked Afghanistan that couldpotentially open the way for millions of dollars in trade and cut itsdependence on Pakistan.

In February, Tehran and New Delhi signed an agreement worth $85 million forthe development of Chabahar Port in south-eastern Iran.

According to the agreement, India will invest the money to build thecapacity of Chabahar port.

The lease agreement which gives operational control to India of ShahidBeheshti port – phase one of the Chabahar port – was signed in the presenceof Iranian President Hassan Rouhani and Indian Prime Minister Narendra Modiin New Delhi.

Addressing a joint press conference after signing the agreements, Modi saidthe two countries want to expand bilateral ties and cooperation in economicdevelopment.

“We will support the construction of the Chabahar-Zahedan rail link so thatChabahar gateway’s potential could be fully utilized,” Modi said, as quotedby Reuters. “We want to expand connectivity, cooperation in the energysector and the centuries-old bilateral relationship.”

However, US President Donald Trump’s decision to pull out of the Irannuclear accord and re-impose sanctions on Tehran threatens to derail theproject which would help build Afghanistan’s economy.

Trump’s decision to re-impose sanctions on Iran and penalize financialinstitutions for doing business with Tehran is clouding Chabahar’sviability as banks, nervous they could be hit with crippling penalties,pull back from financing.