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Taliban Announces Deal With Russia for Oil Products, Wheat

The Russia-Taliban agreement is the first international deal with the group since its takeover in August last year.

September 28, 2022
Taliban Announces Deal With Russia for Oil Products, Wheat
The Taliban’s minister for commerce and industry, Haji Nooruddin Azizi, said Russia offered the products at discounted rates.
IMAGE SOURCE: CGTN

The Taliban announced that it has signed a deal with Russia for gasoline, diesel, liquefied petroleum gas, and wheat.

In an exclusive interview with Reuters, Afghan Minister for Commerce and Industry Haji Nooruddin Azizi stressed on the need to diversify Afghanistan’s energy portfolio, saying, “A country shouldn’t be dependent on just one country, we should have alternative ways.”

To this end, Afghanistan has also recently secured oil and gas supplies from Iran and Turkmenistan and maintains strong trade relations with Pakistan.

Azizi said the deal with Russia ensures the supply of one million tonnes of gasoline, one million tonnes of diesel, 500,000 tonnes of LPG, and two million tonnes of wheat each year. He clarified, however, that the deal will first go through a trial period before both sides decide whether or not to extend the arrangement.

Azizi said the deal reflects the Taliban’s goal of bringing the country out of its economic crisis, noting “Afghans are in great need … Whatever we do, we do it based on national interest and the people’s benefit.”

The minister revealed that Moscow offered the products at a discounted rate and that they would be delivered by road or rail. 

He did not clarify the exact mode of payment and the price of the products. Since both countries have been hit by sanctions and been barred from accessing international banking systems, transferring funds for Russian products could be more complicated than anticipated. However, Azizi said last month that payments will be made through third countries, though he refused to divulge the details on which countries he was referring to.

The Russian Energy and Agriculture Ministries and the Office of Russian Deputy Prime Minister Alexander Novak, who heads oil and gas exports, have not commented on the developments. 

The Russia-Taliban agreement is the first international deal with the group since its takeover in August last year. It marks a significant step in ending the Taliban’s isolation in the international market.

In this regard, the deal is likely to be criticised by the United States (US), which has resisted calls to revive relations with the Taliban, placed heavy restrictions on the delivery of aid, and refused to release over $7 billion in frozen central bank reserves.

Thus far, despite frequent engagement with Russia, China, Pakistan, and even India, no country has officially recognised the Taliban government due to persistent concerns about the group’s commitment to counterterrorism, human rights (particularly of girls and women), and other fundamental freedoms.

Nevertheless, Russia is one of the only countries to have kept its embassy in Kabul open. However, tensions surged between the two sides rose after a blast outside the Russian embassy in Kabul in August killed two employees and injured 11 others. Russian Foreign Minister Sergey Lavrov said the “terrorist act” was “absolutely unacceptable” and called on the Taliban to punish the perpetrators.