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Uzbekistan approves feasibility study agreement for Trans-Afghan Railway

The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.

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Uzbekistan has ratified an international agreement to prepare a feasibility study for the Naybabad–Kharlachi section of the Trans-Afghan Railway, formalizing its participation in the project.

President Shavkat Mirziyoyev signed a decree on February 4 approving the agreement.

The framework agreement involves the transport ministries of Uzbekistan, Afghanistan and Pakistan and provides for joint work on a feasibility study for the proposed railway line between Naybabad and Kharlachi. The section forms part of the wider Trans-Afghan Railway project aimed at strengthening transport links between Central and South Asia.

Under the decree, Uzbekistan’s Ministry of Transport has been designated as the competent authority responsible for implementing the agreement. The Ministry of Foreign Affairs has been tasked with notifying Kabul and Islamabad that Uzbekistan has completed the internal procedures required for the agreement to enter into force.

The agreement builds on a tripartite document signed on July 17, 2025, which outlined cooperation on preparing a feasibility study for the Termez–Kharlachi railway corridor.

The planned route is expected to run through Termez, Naybabad, Maidanshahr, Logar and Kharlachi, providing a transit corridor through Afghanistan.

The feasibility study will be commissioned by the Tripartite Project Office for the Development Strategy of International Transport Corridors under Uzbekistan Railways.

Established in Tashkent in May 2023, the office also operates branches in Kabul and Islamabad to coordinate the project.

First proposed in 2018, the Trans-Afghan Railway was initially projected to carry up to 20 million tons of cargo annually at a cost of about $5 billion. Cost estimates have since been revised.

In July 2022, Uzbekistan Railways cited an estimate of $4.6 billion with a construction period of up to five years, while Pakistan’s Ministry of Railways put the cost at $8.2 billion in December 2024.

More recent assessments have placed the overall cost at around $7 billion, with a public-private partnership under a Build-Operate-Transfer model among the options under consideration.

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Tripartite agreement to launch new Russia–Turkmenistan–Afghanistan transit corridor

The agreement is scheduled to be finalized on the sidelines of the Kazan Forum 2026, according to Russian media reports.

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A tripartite agreement to establish a new trade and transit corridor linking Russia’s Republic of Tatarstan, Turkmenistan, and Afghanistan is expected to be signed in May, opening a fresh route for the movement of goods between Russia and Afghanistan.

The agreement is scheduled to be finalized on the sidelines of the Kazan Forum 2026, according to Russian media reports. The proposed corridor is seen as a strategic alternative to existing routes, particularly the North–South Corridor, which has faced disruptions due to ongoing tensions in Iran.

Rustam Khabibullin, head of the Russian Business Center in Afghanistan, said the new route could significantly streamline cargo transport between Russia and Afghanistan. He added that the corridor may also attract companies from Europe and Asia seeking more stable and reliable logistics options.

Afghanistan is considered a key supporter of the initiative. Once operational, the corridor is expected to facilitate direct shipments from Tatarstan to Afghanistan, reducing reliance on indirect transit routes through Central Asia.

The development has been welcomed by members of Afghanistan’s private sector, who say that expanding transit infrastructure and logistics networks could boost trade and contribute to economic growth.

In recent years, Afghanistan has emerged as an important market for Tatarstan’s halal products. According to reports, Afghan imports of halal goods from Tatarstan reached $51.7 million in 2025, marking a notable increase compared to the previous year. However, much of this trade has so far been conducted indirectly via third countries.

The planned corridor is expected to enhance direct trade links and improve efficiency in regional commerce.

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Russia backs Uzbekistan–Afghanistan trade hub, praises regional economic cooperation

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A senior Russian diplomat has praised Uzbekistan’s efforts to boost regional trade and economic cooperation, highlighting the strategic importance of a new international trade hub near the Afghan border.

Mikhail Galuzin, Deputy Minister of Foreign Affairs of the Russia, made the remarks to media representative covering an international conference titled “Uzbekistan – Russia: Strategic Partnership in the Eurasian Space,” at the Termez International Trade Center in southern Uzbekistan.

Speaking to media representatives, Galuzin commended the development of the Surkhandarya region, describing it as a “unique oasis” with significant economic potential. He said the Termez International Trade Center—located in a free trade zone—represents a major step forward in strengthening trade links, particularly between Uzbekistan and Afghanistan.

“The project deserves the highest praise,” Galuzin said, adding that the center is expected to play a key role in expanding trade and economic ties and advancing broader strategic partnerships across the Eurasian region.

The trade center was established under a resolution by Shavkat Mirziyoyev and is designed to facilitate commerce by providing a platform for Uzbek and Afghan entrepreneurs to showcase goods and investment projects. According to Galuzin, such initiatives are already contributing to increased trade turnover, with Afghanistan currently ranking among Uzbekistan’s top trading partners.

He also noted growing interest from Russian regions and businesses in participating in the project, calling for further expansion of cooperation among the countries involved.

Galuzin emphasized that platforms like the Termez trade hub and international conferences play a vital role in building direct economic connections, which in turn help create stable supply chains and open new opportunities for trade and investment across the region.

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Afghanistan opens doors to agribusiness investments amid rising opportunities

They urge MAIL to introduce incentive packages that would make the sector more attractive for investors.

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Officials from the Ministry of Agriculture, Irrigation, and Livestock (MAIL) have reiterated their commitment to expanding investment opportunities in Afghanistan’s agricultural sector, aiming to attract both domestic and international investors.

According to Sher Mohammad Khatami, spokesperson for the ministry, technical cooperation and land access are key priorities for supporting investors. “Around 72,000 jeribs of land have been allocated for agricultural and livestock projects across the country,” Khatami said.

The ministry highlights Afghanistan’s vast potential in agriculture, livestock, horticulture, irrigation, product packaging, storage, transport, and cold chain facilities. Private sector representatives note that with the proper technical support and land allocation, local investors would be more willing to participate in the sector.

However, some private investors have voiced concerns over the ministry’s performance, saying that despite Afghanistan’s high agricultural capacity, sufficient steps have not been taken to standardize products or achieve self-sufficiency.

Economic experts stress that well-targeted development of agriculture and livestock could unlock multi-billion-dollar investment opportunities.

They urge MAIL to introduce incentive packages that would make the sector more attractive for investors.

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