Russia has extended an offer to export select food items to Bangladesh under the government-to-government (G2G) terms at highly competitive prices, according to a senior commerce ministry official.
Along with the geopolitical and bilateral issues, this proposal will be a focal point of discussion during the visit of Russian Foreign Minister Sergey Lavrov beginning tomorrow.
The offer becomes especially significant as Russia recently withdrew from the Black Sea grain deal, which expired on 17 July. Bangladesh used to import wheat, sunflower oil, and fertiliser from both Russia and Ukraine. But the ongoing war between the two countries has almost halted these imports.
The proposal was formally conveyed in a letter from the Russian state-owned JSC FEC Prodintorg to Bangladesh's commerce ministry. Russia's expression of interest in enhancing collaboration with Bangladesh is emphasised, particularly in the supply of various food products, including yellow peas, chickpeas, red lentils, green lentils, sunflower oil, and more, under G2G terms.
"We would like to take the opportunity to supply these food commodity items at the most competitive and comprehensive price," reads the letter.
It is expected that military cooperation will also be discussed during Sergey Lavrov's visit.
The foreign minister of Russia, a close ally of Bangladesh since its Liberation War in 1971, will arrive in Dhaka on 7 September after attending the 18th East Asia Summit in Jakarta.
Lavrov will hold a meeting with Bangladesh's Foreign Minister AK Abdul Momen on his arrival and call on Prime Minister Sheikh Hasina the next day before leaving for the G20 conference in New Delhi.
On 26 August, the Russian embassy in Dhaka sent a note verbale to inform the commerce ministry about Lavrov's visit.
The general director of the Russian state-owned joint stock company Foreign Economic Corporation "Prodintorg" has proposed the export of the food items. It is a subsidiary company under the Ministry of Agriculture of Russia.
Earlier, in a letter to Senior Commerce Secretary Tapan Kanti Ghosh, the Russian company wrote that since 2013, they have been exporting chemical fertilisers and food grains to Bangladesh on a G2G basis. The company has exported over 1.3 lakh tonnes of potash fertiliser and over 1.5 lakh tonnes of wheat to Bangladesh.
Officials at the commerce ministry have stated that the state-run Trading Corporation of Bangladesh (TCB) is providing subsidised food items, including lentils, to one crore impoverished individuals in the country.
As a result, the TCB has had to import lentils. Additionally, there is a demand for sunflower oil in Bangladesh. If these products are available at competitive prices, they can be imported from Russia, they added.
Former foreign secretary Touhid Hossain told The Business Standard, "We can source the products we import from the international market from Russia if there's an opportunity to do so at a lower price."
But the payment system due to the US SWIFT ban on Russia needs to be discussed, he added.
The retired diplomat stated that this high-level visit from Russia, the first of its kind since Bangladesh's independence, holds both political significance and potential for enhancing commercial relations. However, the ultimate impact of the visit will depend on the outcome of the discussions.
Since the Ukraine-Russia war, Moscow has sent multiple letters seeking Bangladesh's support in various international organisations, including the United Nations and the World Trade Organization, according to officials.
Russia had never spoken about the internal politics in Bangladesh, but it has changed its position over the past year. Calling the role of US and European politicians seeking free, fair, and peaceful elections in Bangladesh "neo-colonialism", the Russian foreign ministry said such a move was a "shameless interference" in the internal affairs of a sovereign state.
At the foreign ministers' meeting, discussions are expected to revolve around strengthening Dhaka-Moscow relations, cooperation in the energy sector, defence collaboration, and enhancing trade relations in the context of the Rooppur nuclear power plant.
Apart from this, about 20 agreements and memoranda of understanding that await signing between the two countries may also be discussed, said commerce ministry officials.
The proposed MoUs include defence, extradition of prisoners, and peaceful use of space, they added.
Trade potential
Early last year, Bangladesh expressed interest in forging a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), an economic union led by Russia, encompassing Belarus, Kazakhstan, Armenia, and Kyrgyzstan. The aim was to tap into the export potential across various sectors.
These five Eastern European nations engage in annual bilateral trade with Bangladesh valued at over $1.5 billion, a figure that could see substantial growth with the establishment of an FTA, as suggested by officials in the commerce ministry.
In May 2019, Bangladesh and the Eurasian Economic Union formalised their collaboration by signing a memorandum of cooperation in Moscow. Subsequently, a working group was established to bolster trade and economic ties across 19 different sectors.
It's important to note that Bangladesh does not currently benefit from duty-free access to Eurasian markets, which hold immense potential for its export products. For instance, Bangladesh's exports of readymade garments, totalling $426 million in FY2022-23, experienced a decline of nearly 30% compared to the previous year. Exporters believe that Russia alone could represent a $1 billion export market for Bangladesh if not for ongoing conflicts.
In a report submitted to the commerce ministry on March 14, 2022, the Bangladesh embassy in Moscow recommended that the government explore the possibility of exporting medicines and potatoes to Russia in exchange for importing essential foodstuffs such as wheat, fertilisers, and edible oil. This could be facilitated through government-to-government barter arrangements or currency swaps, thereby bypassing the need to rely on Russia's participation in SWIFT, the international payment system.
Russian Foreign Minister Sergey Lavrov’s visit will also focus on geopolitics
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Bangladesh and Indonesia have signed a memorandum of understanding (MoU) on cooperation between the two countries in the energy sector.
A separate bilateral MoU on agricultural cooperation between the two countries was also signed.
Foreign Minister Dr AK Abdul Momen and his Indonesian counterpart Retno Marsudi in Jakarta signed the MoUs on Monday (5 September).
Bangladesh urged Indonesia to ease the market access for Bangladeshi readymade garment products in Indonesia.
While the energy-sector MoU aims at promoting long-term sale and delivery of the conventional form of energy to and developing new and renewable energy sources and power plants in Bangladesh, the agriculture one is intended to foster collaboration in producing, marketing, promoting technology transfer and exchange of best practices in the field of agriculture, said the Ministry of Foreign Affairs on Tuesday.
Expressing his satisfaction over the recent increase in bilateral trade volume between the two countries surpassing the three-billion-dollar mark, Dr Momen noted the stark imbalance between Bangladesh's import and export volumes.
The gap can only be reduced by promoting the export of Bangladeshi products to the Indonesian markets, especially the ones that Bangladesh has a competitive advantage in, he said.
Recognizing Indonesia as an important trade partner of Bangladesh in the ASEAN region, Momen said there was great potential to further enhance bilateral trade and investment, given the complementary strengths and resources.
He expressed his hope that the bilateral Preferential Trade Agreement between the two countries would be finalized soon.
The two foreign ministers discussed various aspects of the bilateral relationship between the two countries, including cooperation in trade and investment and collaboration between the two countries in the international forums, Bangladesh's bid to become a sectoral dialogue partner of ASEAN and the issue of the repatriation of the forcible displaced Myanmar nationals (the Rohingyas) temporality sheltered in Bangladesh.
Foreign Minister Marsudi underscored the meteoric socio-economic development under the able leadership of Prime Minister Sheikh Hasina.
Noting that Bangladesh and Indonesia enjoy cultural similarity and a historical bond the the people-to-people level, she emphasized exploring new avenues of collaboration and partnership to build a stronger, more vibrant relationship between the two great nations.
The ministers stressed the potential of further enhancing collaboration to ensure energy and food security.
Dr Momen is now visiting Jakarta to accompany President Mohammed Shahabuddin as the latter, at the invitation of President Joko Widodo of Indonesia, participating in the 43rd ASEAN Summit and the 18th East Asia Summit – two grand events attended by top leaders from the Southeast Asia region and beyond.
Bangladesh urged Indonesia to ease the market access for Bangladeshi readymade garment products in Indonesia
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A Bangladeshi naval delegation led by Commodore Mustaque Ahmed, (G), NPP, pcs, BN arrived in Yangon by air to attend the 6th Myanmar-Bangladesh Navy to Navy Staff Talk.
The Myanmar delegation, led by Commodore Kyaw Kyaw Htoo, held the talks with the Bangladeshi delegation at Ayeyarwaddy Naval Region Command Headquarters on the 1st of September 2023.
During the talks, the two naval delegations discussed matters related to maritime security, joint naval patrols, exchange trips of naval officers and other ranks of the two countries, information exchange and protection of sea pollution.
On 2 September, the agreements reached during the talks were signed. The Bangladeshi delegation departed from Yangon by air on Sunday and senior naval officers of Tatmadaw (Navy) saw off the Bangladeshi delegation at the Yangon International Airport.
The G20 Summit will enable France’s Head of State to continue his ongoing dialogue with his counterparts from every continent, so as to combat the risks of fragmentation of the world. It will also be an opportunity to make progress in implementing joint responses to the major global challenges that can only be tackled effectively through multilateral action: peace and stability, poverty alleviation, protection of climate and our planet, food security, and digital regulation.
The Summit will also provide an opportunity to follow up on the Summit for a New Global Financial Pact held in Paris last June. This had led to the establishment of the Paris Agenda for People and the Planet, providing a framework for collective action to ensure that no country has to choose between fighting poverty and protecting the planet.
In Bangladesh, the President of the French Republic will continue to implement France’s strategy in the Indo-Pacific region, after having welcomed Prime Minister Modi in Paris this summer, and visited Papua New Guinea, Vanuatu, and Sri Lanka. It will also be an opportunity to deepen our bilateral relationship with a country that is undergoing rapid economic development, with France’s support, and is seeking to diversify its partnerships.
Bangladesh and France also have a great commonality of views when it comes to global challenges, particularly with regard to the Paris Agenda for People and the Planet, which Bangladesh actively supports. Bangladesh being particularly vulnerable to the impacts of climate disruption, President Macron will reiterate France’s determination to stand by its side on the humanitarian front, particularly given the regular flooding the country faces. Bangladesh is also a major contributor to international solidarity efforts, be they through its contingents in peacekeeping operations or in hosting Rohingya refugees.
The President of the French Republic, Emmanuel Macron, will travel to Delhi to participate in the G20 Summit under India's Presidency on 9 and 10 September, and will then travel to Bangladesh on 10 September for a bilateral visit.
bd.ambafrance.org
