Business

Afghanistan purchases 10,000 tons of gas condensate from Russia in one month: Report

Russian media have reported that Afghanistan purchased 10,000 tons of gas condensate from Russia in January 2024 as part of an expanding energy trade between the two countries.

According to the industry publication Argus, the imports were facilitated by Ghazanfar Group, an Afghan company that supplies feedstock to its mini-refinery, Ghazanfar Oil Refinery, which has an annual processing capacity of 150,000 tons.

The first shipment, consisting of 350 to 450 tons, was transported from Okunay station in Russia’s Irkutsk region and arrived in Hairatan, Afghanistan, on January 27. A second shipment of 5,000 tons is scheduled for delivery by rail in February.

Afghanistan Expands Gas Condensate Imports

According to Argus, the price of Russian gas condensate at the Russia-Kazakhstan border in January ranged between $460 and $490 per ton.

Despite possessing domestic crude oil resources, Afghanistan continues to rely on gas condensate imports because many of its mini-refineries lack the capacity to process heavy crude oil, which is predominantly produced in the country.

Afghanistan previously restricted gas condensate imports in September 2023 in an effort to promote domestic crude oil production. However, the country resumed imports in the fourth quarter of 2023, purchasing 5,000 to 7,000 tons of condensate from Turkmenistan and Iran.

Russia’s Expanding Trade with Afghanistan

Although Moscow has not officially recognized the Taliban government, Russia was among the first countries to sign trade agreements with Afghanistan following the Taliban’s return to power in August 2021.

In addition to gas condensate, Afghanistan has become a major importer of Russian wheat flour. According to Agroexport, a Russian agricultural trade body affiliated with the Ministry of Agriculture, Afghanistan imported $80 million worth of flour from Russia in 2024, doubling its purchases from the previous year.