Afghanistan's Iran Rail Trade Soars, But US Sanctions Threaten Vital Corridor

Afghanistan's Tolo News on Wednesday quoted local officials in the country's western province of Herat stating the significant increase in trade volume by the Herat-Khaf railway line. According to them, the rail-link has connected Afghanistan to global markets, where between 2,000 and 5,000 metric tons of goods from various countries enter Afghanistan daily through this route, said the report.

Once complete, the railway line will serve as a five-nation corridor, linking Iran, through Afghanistan, Tajikistan, Kyrgyzstan, to China. On May 9, 2023, the railway link witnessed its first trial run of cargo from Iran to Afghanistan.

Ghulam Wali Mohammadi, head of the Rozanak station on the Herat-Khaf railway, told Tolo News, "Previously, we had 10,000 to 15,000 tons of imports per month, but now that figure has reached 70,000 tons. These goods arrive at Rozanak station from various countries." Cement, corrugated iron sheets, tiles, and diesel are among the top imported goods via the Herat-Khaf railway, where most of the consignments are from countries like Iran, Turkey, China, and the United Arab Emirates.

The Herat Chamber of Commerce and Investment added that the expansion of commercial activity at Rozanak station has significantly facilitated the work of importers and traders. Washington imposing sanctions on Iran will lead to trade disruptions, energy shortages, and refugee flows, compounding Kabul's challenges.

The ripple effects of a cautious withdrawal or significant scale-down in operations by countries trading with or through Iran, using its sea and dry ports, will be felt not only in Afghanistan but also in other nearby countries. With its Pakistan borders closed since October due to sporadic firefights, Afghanistan's dependence on cross-border commerce with Iran, coupled with its fragile economy and humanitarian needs, means that sanctions targeting Tehran inevitably spill over into Kabul.

The United States has long used sanctions as a tool to deter Iran's nuclear ambitions, regional interventions, and support for armed groups. Recent escalations - including sanctions on Iranian oil networks and financial systems - have intensified economic pressure on Tehran. While the sanctions are designed to constrain Iran's military and political influence, their effects extend beyond Iran's borders, particularly into Afghanistan, a country that shares deep economic and cultural ties with its western neighbour.

Iran is a major trade partner for Afghanistan, supplying fuel, food, and construction materials. Additionally, there is informal cross-border trade, often a lifeline for Afghan communities, which will be affected under tightened enforcement.

Afghanistan imports a significant portion of its petroleum and electricity from Iran, where sanctions on Tehran's energy sector reduce supply, causing fuel price spikes and electricity shortages in cities during the bitter winters.

At the same time, Iran's weakened rial affects cross-border transactions, complicating Afghan traders' ability to settle payments, while sanctions on Iranian banks limit financial flows, pushing Kabul's businesses further into informal or illicit channels.

- IANS