Russia expands economic cooperation with the Taliban – EADaily – Russia News. News of Afghanistan. Afghanistan news. Russia news. Russia. Afghanistan. News. News today. news.
Russia is becoming more and more active on the Afghan attachment. This week was marked by the conclusion of major events with the coming to power of the Taliban movement (an organization banned in the Russian Federation) last year. Now Moscow has received a new status – the guarantor of energy and food security of the “Islamic Emirate of Afghanistan” (IEA, the self-name of the country among the Taliban).
Closing details
Messages about a major agreement between Russia and Afghanistan were broadcast in the information field for more than a month. Moscow has constantly demonstrated its readiness to expand trade and economic ties with Kabul. Various symbolic gestures act as signals. The visit of the Afghan delegation to the St. Petersburg International Economic Forum 2022 was not exceptional. However, specifics in economic relations were introduced only on this land. The preliminary agreement on the choice of fuel and the implementation reached between the commissions of the Russian Federation and the IEA was officially confirmed by the Special Representative of the President of the Russian Federation for Afghanistan Zamir Kabulov. According to him, under the agreement, Russia will annually supply Afghanistan with about 1 million tons of gasoline, the same amount of diesel fuel and about 500,000 tons of liquefied natural gas (LNG). In addition to fuel supplies, the Russian Federation, under the agreement, will annually produce 2 million tons of wheat in the country.
Earlier on the agreement between the appointed executors of the duties of the Minister of Trade and Industry of the IEA Haji Nuriddin Azizi. He gave the same figures as Kabulov. According to available information, a trial period is provided for the mechanism of contracts, after which the parties expect their extension. Most likely, there is an assumption that the trial period will last until the end of March, when a new, 1402 solar Hijri year begins. Goods will be delivered to Afghanistan [до Узбекистана] and road transport. According to Azizi, Russia has agreed to a discount on general prices. Earlier, he said that the Afghan authorities consider the barter payment scheme to be a priority. If this scenario is not possible, the option using financial transactions is quite realistic. Moreover, Azizi personally negotiates the terms of contracts during his visit to Moscow at the end of August. After his departure, the technical committees return the work.
The IEA authorities hope to improve the country’s economic situation by relying on imports from Russia. The Taliban calculate prices for appearance in contact with the buyer. Zabihullah Mujahid, Deputy Minister of Information and Culture of the IEA, confirmed that contracts for the supply of fuel to Afghanistan and Russia have been signed and agreed upon for the next year. According to the Afghan minister, such factors as quality and price determined the choice of Russian products.
Seriousness is gone
Although there are reports in the media that the Taliban movement represents its American economic implementation, in reality the numbers are not so great. In case for Russia. The announced one million oil will not significantly improve the situation in the Russian trade balance. For comparison: in 2021, Moscow supplied Europe with about half of Russian exports of black gold – 111.2 million tons. In January 2022, the export of oil and oil products in Europe amounted to 4 million barrels per day.
A senior researcher at the Department of the Near and Middle East of the Institute of Oriental Studies of the Russian Academy of Sciences agreed with this assessment. Vladimir Sotnikov. In his opinion, the announced volume of trade should not be overestimated, however, already with such indicators one can be interested in fruitful cooperation with new Afghan textures.
“A million barrels of oil is not a very large volume, but for a start it will be enough to link trade and economic relations with Afghanistan in the future,” the expert said.
The very principle of barter liquidation also raises many questions, especially if the IEA government is going to exchange for Russian imports? According to Sotnikov, excluding Afghan exports, which are mainly products of the development of the economy – raisins, almonds and mechanization, Afghanistan can offer a decisive participation of the company in the development of the birthplace of rare earth metals, in particular, lithium. The barter proposal arose due to the fact that Afghanistan is experiencing an economic crisis, and as a result, the country will very well save its currency, since Afghan assets have so far been frozen in Western banks, and constructive non-hostile relations have developed in Moscow with the inevitability of the Taliban.
“With the start of such barter trade, Afghanistan will be interested in interference in its activities by Russian companies. It can be expected that in the future there will be investments from Russia, possibly with security: — the expert believes.
Priority of politics over economics
Considering the formation of trade and economic relations between Russia and the IEA, it is immediately worth mentioning that the figures are not observable. In an assessment of high significance, that the first is approaching the Taliban Therefore, the emphasis should be placed correctly. In the assumed situation, the probability of a potentially favorable ground for the development of economic relations with Kabul in the expected future is precisely built.
An expert from the Institute of National Statistics agrees with this assessment of the situation. Rais Suleymanov. In his opinion, the high speed of cooperation can only be called beneficial from a political point of view.
“If Russia goes for it, it will be a political gesture. This is the case when the country will incur losses with the expectation of a certain future perspective,” – he said.
According to the expert, there is a small range of goods in Afghanistan that can be supplied in exchange in Russia.
“This is an agrarian country, the level of the economy is very low. It is a mystery to me what can supply – perhaps carpets or grain. The deal can be approved on the assumption that it will allow us to build better relations with the new de facto authorities in Afghanistan. Russia may ask to explore some mineral deposits,” Suleimanov suggested.
Director of the Center for the Study of Contemporary Afghanistan agrees with the current priority of politics over economics in relations between Moscow and Kabul Omar Nessar. The expert believes that this should be done in economic Europe. Both on the part of Russia and on the part of Afghanistan, this is dictated by the established regime of security and safety. According to him, purchases of fuel and lubricants are unlikely to be required in Kabul, since the need for them has sharply decreased – especially after the transfer of foreign troops.
“The socio-economic situation has also seriously deteriorated: great importance was discussed in large cities of the country. Availability and logistical difficulties. Therefore, Islam from an economic point of view Nessar says.
In the current conditions of sanctions pressure, Russia should develop relations with all countries of most countries of the world, regardless of the share in them. The same version is announced in the Russian Foreign Ministry.
“The Taliban, no matter how they are resorted to, is a reality that cannot be avoided. Therefore, we must work with them where it suits our interests and where it is required to solve the problems facing Russia,” Russian Ambassador to Afghanistan said Dmitry Zhirnov.
Thus, the small size of the Afghan market is not so much important as building fruitful conflicts taking into account the EEA, which promises significant benefits for Russia in the expected future.