ISLAMABAD: The United States has warned American companies to exercise extreme caution before engaging in business with Taliban-ruled Afghanistan, stressing that transactions with the group could violate US sanctions and counterterrorism laws.

The warning comes days after former US special envoy for Afghanistan Zalmay Khalilzad attended the signing of a Saudi energy agreement in Kabul and met Taliban Foreign Minister Amir Khan Muttaqi.

A US State Department spokesperson told Radio Free Europe/Radio Liberty (RFE/RL) that any private company considering commercial activity in Afghanistan must ensure its dealings comply with US laws and regulations because the Taliban remains listed as a Specially Designated Global Terrorist (SDGT) entity.

The spokesperson emphasized that Khalilzad is no longer a US government official and does not represent Washington.

“Khalilzad is not a US government employee. As such, he does not represent the United States government,” the spokesperson said, distancing the Trump administration from his visit.

Khalilzad travelled to Kabul on Sept. 7, where he attended the signing of an initial $200 million agreement between the Taliban’s Ministry of Mines and Petroleum and Saudi-based Delta International Energy. The visit took place just days before the 25th anniversary of the Sept. 11 attacks, drawing scrutiny because the United States does not recognize the Taliban government.

The US Treasury Department says American citizens and companies are generally prohibited from engaging in transactions, contracts, payments, or financial cooperation with designated terrorist entities. It also warns that non-US individuals and businesses conducting certain transactions with such groups could face US sanctions as well as civil or criminal penalties.

Since returning to power in August 2021, the Taliban has sought foreign investment and international engagement despite remaining largely isolated from the global financial system. Taliban leaders continue to face international sanctions over human rights abuses and restrictions on women and girls.