The Islamic Emirate of Afghanistan (IEA) is in advanced talks with Russia—and has proposed similar discussions with China—to conduct trade transactions in local currencies, Acting Minister of Industry and Commerce Nooruddin Azizi told Reuters on Thursday.
Technical teams from Russia and Afghanistan are negotiating the plan, aimed at bypassing Western sanctions and reducing reliance on the U.S. dollar. Talks with China are ongoing via the Chinese embassy in Kabul.
“We are currently engaged in specialised discussions on this matter, considering the regional and global economic perspectives, sanctions, and the challenges Afghanistan is currently facing, as well as those Russia is dealing with. Technical discussions are underway,” Azizi said.
Azizi said Afghanistan’s annual trade with Russia stands at about $300 million and is expected to grow, especially in petroleum and plastics imports. Trade with China is currently about $1 billion per year.
“I am confident that this is a very good option…we can use this option for benefit and interests of our people and our country,’ Azizi said.
“We want to take steps in this area with China as well,” he said, adding Afghanistan had around $1 billion in trade with China each year. “A working team composed of members from the (Afghan) Ministry of Commerce and the Chinese embassy which is an authorized body representing China in economic programmes has been formed, and talks are ongoing.”
Sanctions have isolated Afghanistan’s financial sector since the Islamic Emirate took power in 2021.
Afghanistan began importing gas, oil, and wheat from Russia in 2022, marking a major economic move following the Islamic Emirate’s return to power.
