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.

The Ministry of Commerce and Industry of Afghanistan has announced a renewed commitment to enhancing cooperation between Afghanistan and Turkey in the carpet industry, with a particular focus on boosting Afghan carpet exports to European markets via Turkey.

During a meeting held in Kabul, Acting Minister of Commerce and Industry, Nooruddin Azizi, met with Ahmet Diler, President of the Turkish Carpet Union, and his accompanying delegation.

The discussion centered on strengthening joint efforts in the carpet sector and utilizing Turkey’s trade infrastructure to facilitate Afghan carpet access to European consumers.

According to the official statement, the meeting was also attended by leaders of the Afghan Carpet Manufacturers and Exporters Union.

Both sides underscored the cultural and economic value of Afghan carpets, recognizing them as a national symbol and one of Afghanistan’s most valuable export commodities.

Diler praised the high quality of Afghan carpets and noted their positive influence on Turkey’s own carpet industry.

He stated: “With around 500 members, the Turkish Carpet Union is ready to support Afghanistan’s carpet sector and to encourage necessary investments in this area.”

In response, Azizi reiterated the exceptional quality and national importance of Afghan carpets.

He emphasized that closer cooperation between the carpet unions of both countries, along with a reduction in tariffs on Afghan carpets by the Turkish government, would significantly ease their export to Europe—bringing economic benefits to both nations.

Azizi also expressed Afghanistan’s willingness to actively engage in joint marketing campaigns, promotional initiatives, website and exhibition development, cultural awareness programs, and trade missions.

Furthermore, he proposed the launch of a collaborative initiative among major carpet-producing countries—particularly Afghanistan, Turkey, and Turkmenistan, the latter having a dedicated Ministry of Carpets—to promote global appreciation for handwoven carpets.

At the conclusion of the meeting, the Afghan and Turkish carpet unions signed a memorandum of understanding (MoU) during Diler’s official visit to Kabul, marking a formal commitment to advancing joint activities and strengthening sectoral cooperation.

The Turkish delegation’s visit was extended at the official invitation of the Afghan Carpet Manufacturers and Exporters Union and is seen as a significant step toward deepening commercial and cultural ties between the two countries.

The World Bank said on Monday that payments being made to contractors for projects in Afghanistan related to work done prior to the collapse of the former government and that this was money owed to them.

The World Bank said the payments concern outstanding debts owed by the former government of Afghanistan to contractors hired under World Bank-financed projects.

These contractors completed their work before August 15, 2021, the World Bank said.

The contracts were made between the Afghan government and the contractors, making the government responsible for these payments, not the World Bank.

The World Bank said however it is helping to facilitate the payment process on an exceptional basis after thorough validation and independent verification.

The Bank is not a party to the contracts.

The institution said recent statements about this process and technical coordination reflect progress but noted that no restart of previous projects has been discussed or agreed upon.