Taliban signs provisional trade deal with Russia

The Taliban has signed a provisional deal for Russia to supply petrol, diesel, gas and wheat to Afghanistan, according to Acting Commerce and Industry Minister Haji Nooruddin Azizi.

Mr Azizi said his ministry was working to diversify its trading partners and that Russia had offered the Taliban administration a discount on average global commodity prices.

The move, the first known major international economic deal struck by the Taliban since its return to power more than a year ago, could help to ease the Islamist movement's isolation, which has effectively cut it off from the global banking system.

The group, which fought a 20-year insurgency against Western forces and their local Afghan allies before sweeping into Kabul as US troops withdrawed, hasn't been recognized by any country formally.

Western diplomats said that the group needs to change its course on human rights, particularly those of women, and prove that it has cut ties with international militant groups in order to gain formal recognition.

Russia does not officially recognise the Taliban government, but Moscow hosted leaders of the movement in the run-up to the fall of Kabul. Russia's embassy is one of only a handful to remain open in the Afghan capital.

The deal will consist of Russia providing around 1 million tons of petrol, 1 million tons of diesel, 500,000 tons of liquefied petroleum gas LPG and 2 million tons of wheat annually, according to Mr Azizi.

Russia's energy and agriculture ministries did not respond to requests for comment.

The Russian Deputy Prime Minister Alexander Novak, who is in charge of oil and gas, did not immediately respond.

The agreement would run for an unspecified trial period, after which both sides were expected to sign a longer term deal if they were satisfied with the arrangement, according to Mr Azizi.

He wouldn't give details about pricing or payment methods, but said Russia had agreed to a discount on global markets on goods that would be delivered to Afghanistan by road and rail.

The deal was finalised after an Afghan technical team spent several weeks in discussions in Moscow, after Mr Azizi visited there last month.

Since the Taliban regained power, Afghanistan has been plunged into economic crisis after development aid was cut and sanctions have been largely frozen, which has resulted in a reduction in the country's banking sector.

The trade deal is likely to be watched closely in the United States, whose officials have held regular talks with the Taliban on plans for the country's banking system.

Washington has created a Swiss trust fund for some of the Afghan central bank reserves held in the United States.

The Taliban have demanded the release of the entire amount of US 7 billion $10.95 billion and said the funds should be used for central bank operations.

His office is working to support trade and the economy through international outreach, as the international data shows most Afghans are living below the poverty line.

Afghans are in great need, he said.

He said Afghanistan received some gas and oil from Iran and Turkmenistan and had strong trade ties with Pakistan, but also wanted to diversify.

He said that a country shouldn't be dependent on one country, we should have alternative ways to do that.

The Group of Seven G 7 nations is trying to find ways to limit Russia's oil export earnings in the wake of its invasion of Ukraine in February.

Moscow has been able to keep its revenues through increased crude sales to Asia, particularly China and India.

Russian crude imports will be banned by the European Union by December 5 and Russian oil products by February 5.