Taliban Seeks Local Currency Trade Deals With Russia, China

Afghanistan's Taliban-led government is in advanced negotiations with Russia and China to conduct bilateral trade transactions using their national currencies, aiming to reduce reliance on the U.S. dollar amid sanctions and economic isolation. Afghan Acting Minister of Commerce Nooruddin Azizi highlighted ongoing technical discussions with Russia to enable cross-border transactions in Russian rubles and Afghan afghanis, with plans to expand imports of petroleum products and plastics. A similar arrangement with China is being pursued through a joint working group involving the Afghan Commerce Ministry and the Chinese Embassy in Kabul. This initiative aligns with Russia's broader strategy to shift away from the dollar and addresses Afghanistan's sharp decline in dollar inflows due to international aid cuts and sanctions on Taliban leaders. While neither Russia nor China formally recognizes the Taliban government, they have engaged with the group economically, with Russia recently removing the Taliban from its terrorist list and China maintaining official diplomatic contacts. The trade between Afghanistan and Russia currently stands at around $300 million annually, and trade with China is approximately $1 billion, both expected to grow as financial channels improve.