U.S. State Department Cautions Companies on Doing Business in Afghanistan

The U.S. State Department is urging American businesses to be cautious when engaging with Afghanistan. This caution stems from the concern that many entities considered “private” might actually have ties to the Taliban, which is classified as a Specially Designated Global Terrorist Group (SDGT).

A warning was issued recently, reportedly after former U.S. envoy to Afghanistan Zalmay Khalilzad visited Kabul on September 7. His trip coincided with the signing of an oil and gas agreement with Saudi Arabia.

This $200 million deal involved a 25-year contract between Saudi Arabia’s Delta International Energy and the Taliban. The contract allows Delta International to explore for oil and gas in the western provinces of Herat and Badghis for the first eight years, after which they would assist in extraction, as stated by the Taliban’s mining and oil minister, Hedyatullah Badri.

Badri noted, “We are working to create opportunities for investment in the assessment, exploration, prospecting and professional extraction of the country’s natural resources to boost economic growth, improve people’s welfare, and create job opportunities.”

Khalilzad attended the signing ceremony alongside Badri and Delta’s CEO, Shaher al-Taqi. He remarked that the deal signifies Afghanistan’s readiness for business.

He added, “There’s been a vision for Afghanistan for some time for being a land bridge connecting Central Asia — a region rich in resources — with South Asia, which has a huge population and demand for resources. Afghanistan could bridge these two areas.”

Khalilzad has previously served as a U.S. ambassador and held the role of special representative under both President Trump and President Biden. His attendance at the signing ceremony and meetings with senior Taliban officials raised eyebrows.

The State Department clarified soon after that Khalilzad is no longer associated with the U.S. government in any official capacity.

“The Taliban remain designated as an SDGT. Thus, we advise private companies interested in doing business in Afghanistan to exercise extreme care and ensure their dealings comply with U.S. laws and regulations,” stated a spokesperson.

The Financial Times reported earlier this month that some Taliban officials are attempting to mend relations with the Trump administration by offering access to over a trillion dollars in essential mineral resources in exchange for lifting sanctions and releasing frozen assets.

Taliban Foreign Minister Amir Khan Muttaqi mentioned, “Relations between Afghanistan and the United States should be evaluated based on future cooperation rather than through the lens of the last 20 years of conflict. Our economic policy is open.”

Currently, Russia is the only country to officially recognize the Taliban regime. However, nations like China, India, and Iran have shown a willingness to engage with Taliban officials and invest in Afghanistan. The European Union has also initiated contact with Taliban representatives to discuss the return of Afghan refugees.

The Trump administration’s only formal communication to date regarding Afghanistan has been President Trump’s suggestion for the Taliban to return control of Bagram airbase to the U.S., criticizing the Biden administration for its withdrawal in 2021.

The Taliban dismissed Trump’s request, with Muttaqi asserting that all military and civilian facilities in Afghanistan, including Bagram, are national assets. However, he proposed that the U.S. could reopen its embassy given recent improvements in the area.

Critics of the Taliban expressed concern over Khalilzad’s trip, noting that regardless of his official status, it serves as a public relations win for the regime, particularly with the timing of the Delta contract signing near the anniversary of the 9/11 attacks.

“Regardless of his intentions, Khalilzad provided the Taliban with a semblance of American validation amid their quest for legitimacy,” reflected Afghanistan war veteran Will Selber. Meanwhile, Michael Rubin from the Middle East Forum criticized Khalilzad’s participation in the Saudi energy deal ceremony, citing a history of alleged conflicts of interest and a previously friendly stance toward the Taliban.

“The 9/11 Commission has completed its investigations, and after 17 years the special inspector general for Afghanistan reconstruction has submitted his final report,” he stated. “Yet, Khalilzad’s ill-timed ceremony in the Taliban capital during a moment of American mourning raises serious concerns that warrant congressional hearings or further investigation.”