Afghanistan: US allows transactions with Afghan govt despite sanctions

KABUL, 27 February 2022, (TON): The United States issued new rules that would allow most commercial and financial transactions with Afghanistan while maintaining sanctions against the Taliban, in an effort to ease the flow of humanitarian aid and kickstart the paralyzed economy.

Non-governmental organizations and financial institutions have expressed concerns about running afoul of US sanctions targeting the Islamist hardliners in power in Kabul but that has meant a near-halt to all economic activity.

The United Nations has warned that the country is facing a devastating humanitarian crisis, with more than half of the country’s population of roughly 38 million at risk of suffering food shortages.

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

The Treasury said “its latest so-called general license authorizes, to the extent required, all transactions involving Afghanistan and its governing institutions that would otherwise be prohibited by US sanctions.”

Such transactions include dealings with government ministries, infrastructure maintenance or development projects, and business with state-owned companies, according to a Treasury fact sheet.

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