Fergana (TDI): Uzbekistan’s Saneg oil refining company has started processing Afghan crude oil at its Fergana refinery to help mitigate Afghanistan’s severe energy shortages under the Taliban government.
The first shipment of crude oil was transported by rail from the Hairatan terminal in Afghanistan’s northern Balkh province.
Afghanistan is grappling with a major energy crisis, worsened by supply disruptions from Iran and Turkmenistan.
The Taliban has been striving to restart domestic oil production to reduce the country’s reliance on imports.
While Afghanistan’s crude oil, mainly from the Amu Darya basin, remains largely unrefined due to a lack of adequate facilities, neighboring countries like Uzbekistan are stepping in to process and supply much-needed energy resources.
The refining agreement between Uzbekistan and Afghanistan marks a significant step in cross-border cooperation, despite the historically complex relationship between the two countries.
It also represents one of the first such collaborations for Afghan crude oil, offering a lifeline to Afghanistan’s struggling energy sector.
Central Asian Countries Support Afghan Economy
Central Asian countries like Russia and Kazakhstan are also exploring opportunities to support the Afghan economy indirectly by expanding their market presence.
In April, a delegation from Kazakhstan visited Kabul to strengthen trade relations, indicating a shift in regional strategies to engage with Afghanistan amid its international isolation.
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Saneg’s initiative to refine Afghan crude oil is part of Uzbekistan’s broader strategy to expand its refining capabilities and capitalize on business opportunities in a volatile region.
By exporting refined products back to Afghanistan, Uzbekistan aims to generate additional revenue and support a neighboring country in crisis.
However, the long-term benefits may be constrained by political instability and fragile bilateral relations.
Beyond oil refining, Uzbekistan has deepened its economic ties with Afghanistan through several mining agreements.
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Recently, Uzbekistan signed five mining deals worth $1.15 billion with Afghanistan, part of a broader package of 35 agreements and memoranda of understanding between the two countries.
These agreements have increased Uzbekistan’s investment in Afghanistan to over $2.5 billion.
