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Afghanistan’s oil sector is a source of growing interest among investors: IEA

Afghanistan Chamber of Commerce and Investment (ACCI) officials meanwhile called on the ministry to also focus on increasing the operational capacity of established oil extraction companies and in building refineries instead of focusing on attracting foreign investors.

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Afghanistan’s Ministry of Mines and Petroleum reports that the country’s lucrative oil sector is generating growing interest from a number of countries in the region including Iran, Turkey, Russia and Uzbekistan.

According to officials, companies in these countries have shown serious interest in investing in the extraction and refinement processes.

The ministry has however called on Afghan investors to also take advantage of opportunities in the sector.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors in the extraction process but also by establishing refineries that meet international standards.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors

Afghanistan Chamber of Commerce and Investment (ACCI) officials meanwhile called on the ministry to also focus on increasing the operational capacity of established oil extraction companies and in building refineries instead of focusing on attracting foreign investors.

Muhammad Younus Mohmand, Vice-Chairman of the ACCI, said: “Our wish is that the refineries that people invest in, in Afghanistan, should be supported.”

According to union officials, over $300 million has already been invested in the sector in the country, providing jobs to thousands of workers.

Working towards self-sufficiency

Despite having over 200,000 square kilometers of oil and gas reserves, Afghanistan currently purchases nearly 90 percent of its oil and gas needs from Central Asian countries and Iran.

But growing interest from companies in the region could mark a significant shift in Afghanistan’s energy sector, potentially reducing its reliance on imports and boosting regional economic ties.

Earlier this month, the ministry of mines and petroleum reported that it had successfully sold $80 million in crude oil.

For Afghanistan this was a major leap in the direction of growth, especially after China’s Xinjiang Central Asia Petroleum and Gas Company’s (CAPEIC) investment in Afghanistan last year of $49 million has helped boost the country’s daily crude oil output to more than 8,000 bpd.

Spanning Afghanistan and Tajikistan, the Amu Darya basin, where oil is extracted, is estimated to contain 962 million barrels of crude oil and 52,025 billion cubic feet of natural gas.

So far, CAPEIC’s investment of $49 million in Afghanistan has helped boost the country’s daily crude oil output to more than 1,100 metric tons (8,000 barrels per day), a volume that could increase significantly.


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Business

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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