Russia Makes First Direct Investment in Afghanistan Since Fall of Najib

News - Afghanistan


A Russian company will build a facility in Kabul to produce prefabricated house modules, the first major investment from a Russian company since the fall of the Soviet-backed government of Dr. Najihullah in the early 90s.

Minister of Urban Development Affairs Dr. Hassan Abdullahi said that the factory will be founded with a seed investment of $50 million in seven months.

"Based on the agreement, the parties have agreed to establish a limited company and have equal shares. The preliminary investment of the company is $50 million, and the capital over the next three years will reach $500 million," he added.

"The [Russian] company will construct 100,000 residences within the next three years," said Abdullahi.

The facility is expected to provide jobs to more than 3,000 people. And in addition to the construction of large complexes, the facility will also supply low-priced but high-quality construction materials to Afghan construction companies.

"Founding the factory will bring a modern lifestyle for Afghans. In addition to homes, they will be able to construct schools and clinics with advanced systems," said Dimitry Kommisarov, representative of Yastok, the Russian company.

The Afghanistan Chamber of Commerce and Industries (ACCI) lauded the investment and said Russia could play a leading role in the economic development of Afghanistan.

"Russia, as one of the most powerful countries in the world in the fields of economics and politics, could play – in various ways – a key role in our country as well as other countries in the region," said Muhammad Qurban Haqjo, head of ACCI.

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