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ICRC chief says Afghanistan’s most pressing need is cash

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International Committee of the Red Cross (ICRC) President Peter Maurer said this week that Afghanistan’s main problem is not hunger but rather the lack of cash due to economic sanctions.

In an interview with The Associated Press on Thursday, in Dubai, Maurer said Afghanistan is facing a looming humanitarian crisis as aid organizations struggle with ways to pay doctors, nurses and others on the ground because there is currently no way to transfer salaries to bank accounts there.

Maurer’s comments echoed those of the UN’s special representative for Afghanistan, who warned this week that the country is “on the brink of a humanitarian catastrophe” and that its collapsing economy is heightening the risk of extremism.

The AP reported that the ICRC is temporarily carrying in bags of cash to Afghanistan and converting dollars into the local currency, the Afghani, in order to pay some of its staffers.

The ICRC has been able to do this with regulatory approval by the U.S. Treasury Department’s Office of Foreign Assets Control, AP reported adding that the ICRC also has an agreement with the Islamic Emirate of Afghanistan (IEA) to allow donor-funded payments to pass through the ICRC and bypass the IEA government.

“The main problem in Afghanistan is not hunger. The main problem is the lack of cash to pay salaries to deliver social services which have existed before,” Maurer said.

“Let’s not forget that most of these medical doctors, nurses, operators of water systems and electricity systems are still the same people. It is the leadership which has changed, but not these people,” he added.

Maurer said humanitarian organizations cannot “fix an implosion of a whole country.” He said what’s needed is an agreement on a sufficient injection of liquidity — something he believes is possible without formally recognizing the IEA government, AP reported.

The ICRC’s budget until mid-2022 has increased from $95 million to roughly $163 million to address Afghanistan’s increasingly urgent needs.

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Muttaqi, Russian deputy PM discuss expanding economic ties

Overchuk expressed Russia’s readiness to expand economic cooperation with Afghanistan, saying conditions are now in place for launching practical cooperation.

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Afghanistan’s Foreign Minister Amir Khan Muttaqi met with Russian Deputy Prime Minister Alexei Overchuk in Moscow to discuss expanding political and economic cooperation between the two countries.

The talks focused on strengthening trade, transit, regional connectivity and energy cooperation, as well as investment and other areas of mutual interest, Afghan foreign ministry said in a statement.

Muttaqi highlighted the positive trajectory of political relations between Kabul and Moscow and thanked the Russian leadership for what he described as its positive policy toward Afghanistan.

He said the existing political understanding should be translated into practical economic partnerships, stressing the need to expand trade and transit, attract Russian investment to Afghanistan, cooperate in energy and mining, and facilitate banking and payment mechanisms between the two countries.

Overchuk expressed Russia’s readiness to expand economic cooperation with Afghanistan, saying conditions are now in place for launching practical cooperation.

He also stressed the importance of expanding joint work in transit, transport, energy and other sectors, while pointing to a significant increase in bilateral trade last year. He expressed hope that further practical economic cooperation between the two countries would develop in the near future.

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Thirty US states seek access to Afghan assets for 9/11 victims

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The attorneys general of 30 US states have asked the US Supreme Court to review a case involving around $3.5 billion in frozen assets of Da Afghanistan Bank that victims and families of the September 11 attacks are seeking to use for compensation.

The Iowa Attorney General’s Office said in a statement on Monday that the states filed a brief with the Supreme Court in support of the victims and their families, who have obtained compensation judgments in US federal courts.

According to the office, after years of legal proceedings, the victims and their families have secured nearly $17 billion in court-ordered compensation.

However, the US Second Circuit Court of Appeals ruled that around $3.5 billion in assets belonging to Afghanistan’s central bank cannot be used to satisfy those compensation awards.

The assets were frozen by the U.S. Treasury Department on August 15, 2021, the day the Islamic Emirate entered Kabul.

The state attorneys general argue that US law allows the frozen assets to be used to satisfy court-ordered compensation.

Iowa Attorney General Brenna Bird said the victims and their families had pursued justice and compensation through the US legal system and should be able to access the money awarded to them by the courts.

This comes as the Islamic Emirate has repeatedly called for the release of Da Afghanistan Bank assets.

 

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Ariana Afghan Airlines ends 15-year control of ticketing and operational systems by Pakistani firm

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Ariana Afghan Airlines has ended a nearly 15-year arrangement under which a Pakistani company, Zapways, controlled the airline’s ticketing, operational systems and website, the airline said.

Ariana’s press office said Zapways had managed the airline’s ticketing and operational systems for years despite charging high fees. It added that technical information and data related to the systems were also held by the Pakistani company.

The airline said it has now launched a new system in cooperation with a Turkish company whose modern and standardized services are used by more than 80 international airlines across Europe, Asia and Africa.

 

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