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US issues new general license on Afghanistan financial transactions

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(Last Updated On: February 26, 2022)

The US Treasury on Friday issued a new general license allowing international aid organizations and private firms to conduct commercial and financial transactions with Afghan government institutions.

The new license represents a shift in US policy that had impeded ordinary commerce with Afghan government agencies headed by US sanctioned Islamic Emirate of Afghanistan (IEA) and Haqqani Network leaders since they came into power in August, Reuters reported.

The new license maintains prohibitions on transactions with sanctioned leaders and other blocked individuals and excludes transfers of luxury items.

The license makes clear “that while sanctions on the Taliban (IEA) remain in place, this action facilitates the private companies and aid organizations working with governing Afghan institutions and paying customs duties, fees and taxes,” a senior administration official told reporters on a conference call.

The new license is part of what US officials said are ongoing US efforts to help contain an economic collapse that quickened in August when Washington and other donors cut financial aid underpinning 75 percent of Afghanistan’s public spending.

“Our action today recognizes that in light of this dire crisis, it is essential that we address concerns that sanctions inhibit commercial and financial activity,” Deputy Treasury Secretary Wally Adeyemo said in a statement.

The license, signed and published by the US Treasury Department on Friday, stated: “Authorizing Transactions Involving Afghanistan or Governing Institutions in Afghanistan (a) To the extent authorization is required and except as provided in paragraph (b) of this general license, all transactions involving Afghanistan or governing institutions in Afghanistan prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), the Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part 597 (FTOSR), or Executive Order (E.O.) 13224, as amended, are authorized.”

The Office of Foreign Assets Control (OFAC) of the US Department of Treasury explained that the new license, GL 20, “authorizes financial transfers to or involving all governing institutions in Afghanistan — including but not limited to the DAB (Central Bank), Ministry of Education, Ministry of Energy and Water, Ministry of Finance, Ministry of Agriculture, Irrigation, and Livestock, and Ministry of Public Health — or to or involving state-owned or -controlled companies and enterprises in Afghanistan, including Da Afghanistan Breshna Sherkat (DABS), provided there are no financial transfers to the Taliban (IEA), the Haqqani Network, any entity in which the Taliban (IEA) or the Haqqani Network owns, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest, or any blocked individual who is in a leadership role of a governing institution in Afghanistan,”

Examples of activities authorized by GL 20 includes “commercial transactions involving Afghanistan, including imports from Afghanistan, exports to Afghanistan, and commercial transactions within or involving the geographical territory of Afghanistan.”

It also includes “dealings with state-owned or -controlled companies and enterprises in Afghanistan, including the electrical utility Da Afghanistan Breshna Sherkat (DABS).” 

Other inclusions are as follows:

  • Payment of taxes, fees, or import duties, or the purchase or receipt of permits, licenses, or public utility services, provided that such payments do not relate to luxury items or services;
  • Financial institutions’ processing of transactions to, from, or transiting Afghanistan, including clearing, settlement, and transfers through, to, or otherwise involving privately owned and state-owned Afghan banks;
  • Financial and professional services related to economic activity in Afghanistan;
  • Activities related to infrastructure maintenance or development in Afghanistan, including water, sanitation, energy, electricity, and public utilities;
  • Activities related to the development, maintenance, and operation of civilian transportation in Afghanistan, including safety and maintenance operations for civilian transportation in Afghanistan, including air traffic services, air navigation services, other transactions ordinarily incident and necessary to operations or use of airports, ground and landside operations, and rail or road construction or maintenance;
  • Transactions with respect to the receipt and transmission of telecommunications, mail, or parcels involving Afghanistan;
  • Importation from and exportation to Afghanistan of any information or informational materials;

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Acting commerce minister meets Russian deputy PM

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(Last Updated On: May 17, 2024)

Nooruddin Azizi, Acting Minister of Industry and Commerce, met with Russia’s Deputy Prime Minister Alexei Overchuk to discuss trade and investment, it was announced on Friday.

Sergey Pavlov, General Director of Russian Railways, and Dmitry Zverev, Deputy Minister of Transport of Russia, were also present in the meeting, the Ministry of Industry and Commerce said in a statement.

According to the statement, the two sides discussed increasing the volume of trade, preferential tariff for Afghan goods, Russian investment in mines and water dams in Afghanistan, and Afghanistan’s role in the International North–South Transport Corridor.

They also discussed about reducing the cost of transportation through the Russian railway, removing the export tax on basic materials, arranging the trip of the delegation to the ports of Astrakhan and Makhachkala, and holding a trade connectivity conference and an expo of Afghan products in Moscow.

Azizi met with the Russian deputy PM on the sidelines of the Kazan Forum – the 15th International Economic Forum of Russia and the Islamic World.

He also met with representatives of a number of Tatarstan and Russia companies and encouraged them to invest in Afghanistan.

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Azizi meets with head of Tatarstan on sidelines of Kazan Forum

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(Last Updated On: May 16, 2024)

The Ministry of Commerce and Industry said Thursday acting minister Nooruddin Azizi met with the leader of Russia’s autonomous republic of Tatarstan, Rustam Nurgaliyevich Minnikhanov, on the sidelines of a meeting in Kazan.

According to the ministry, Azizi met with Minnikhanov on the sidelines of the Kazan Forum – the 15th International Economic Forum of Russia and the Islamic World.

The two officials discussed bilateral trade relations, the establishment of the Russian Trade House in Afghanistan, the visit of Minnikhanov to Kabul, investment in electricity production, water transfer, mining, cultural and economic cooperation and other matters.

This annual meeting is held by Russia and the 14th round of this meeting was also held in the same country last year.

The main goal of the forum is to strengthen trade and economic, scientific and technical, social and cultural ties between Russian regions and the countries of Organisation of Islamic Cooperation (OIC), as well as to promote the development of the Islamic financial system institutions in Russia.

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Afghanistan’s imports and exports totaled $10.3 billion last year

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(Last Updated On: May 15, 2024)

The National Statistics and Information Authority (NSIA) said on Wednesday that last year, the value of exports totaled $1.79 billion while imports totaled $8.57 billion.

According to NSIA, fruits accounted for the largest share of export items last year, totaling over $645 million.

Medicinal plants, minerals and vegetables were the next top three items respectively to be exported.

Meanwhile, petroleum and oil accounted for the largest portion of imported goods, totaling over $1.37 billion.

Another large portion of the total amount imported went to machinery, vehicles and parts. This totaled over $1.15 billion, followed by textiles, metals and metal products.

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