Bangladesh News Bangladesh Foreign Affairs

[Isa Khan]

Russia has proposed settling bilateral trade with Bangladesh in Indian rupees, establishing a dedicated payment infrastructure, and opening a branch of a Russian bank in Dhaka to overcome transaction hurdles caused by US sanctions on Russian banks.

The proposals will be discussed at the upcoming meeting of the Bangladesh-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, which is expected to be held in September or October, according to officials at the Economic Relations Division (ERD).

The ERD is scheduled to hold a preparatory meeting today to finalise Bangladesh's agenda ahead of the bilateral talks.

Russia seeks alternative payment mechanism

According to ERD officials, Russia has proposed settling transactions with Bangladesh in Indian rupees after US sanctions imposed on Russian banks following the outbreak of the Russia-Ukraine war disrupted conventional payment channels.

Moscow has also proposed establishing a bilateral payment infrastructure to facilitate financial transactions between the two countries and has renewed its proposal to open a branch of a Russian bank in Bangladesh.

Russia had made a similar proposal during the previous Awami League government, but the initiative did not progress after the Bangladesh Bank sought the opinion of the Ministry of Foreign Affairs.

Bangladesh has been unable to transfer loan repayments for the Russian-financed Rooppur Nuclear Power Plant project because of sanctions on Russian banks. Russia initially proposed repayment in Chinese yuan, but banks in both China and Bangladesh reportedly declined to participate due to concerns over possible exposure to US sanctions.

As an interim arrangement, Bangladesh has been depositing loan instalments into a Russian account maintained at Sonali Bank. However, the funds cannot be transferred onward to Russian banks because of the sanctions.

Russia's latest proposal comes as India and Russia already conduct part of their bilateral trade in Indian rupees despite not having a currency swap agreement. Bangladesh also conducts trade with India in Indian rupees alongside the US dollar and other foreign currencies.

According to ERD officials, Bangladesh had earlier proposed that Russia invest the loan repayment funds accumulated in its Sonali Bank account within Bangladesh, but Moscow did not accept the proposal.

Trade expansion and investment

Russia has proposed expanding and diversifying bilateral trade, including establishing a Russia-Bangladesh Business Council and developing a registry of reliable Bangladeshi textile suppliers for Russian importers.

The Russian side has also proposed strengthening cooperation between small and medium-sized enterprises and assisting Bangladesh in establishing special economic zones.

Although Russia supported Bangladesh during the Liberation War, Bangladesh's exports to the Russian market remain limited despite significant potential. Before the Russia-Ukraine war, Bangladesh's annual exports to Russia exceeded $500 million, but exports have declined since the conflict began.

According to Export Promotion Bureau data, Bangladesh exported goods worth $245 million to Russia during the July-May period of the current fiscal year.

Bangladesh continues to import fertiliser, wheat and other commodities from Russia.

Bangladesh's priorities

ERD officials said Bangladesh will place its highest priority on securing Russian technology transfer during the upcoming commission meeting.

Dhaka will seek closer cooperation in renewable energy, power generation and the broader energy sector, alongside collaboration in e-commerce, the digital economy and innovation.

Bangladesh will also seek joint initiatives in agriculture, food security and agro-processing industries, as well as cooperation in technical and vocational education, skills development, connectivity and logistics.

The Bangladesh-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation was established in 2017 as the principal bilateral platform for promoting economic cooperation, energy projects and trade.

Its most recent formal meeting was held virtually on 15 March 2023, following earlier sessions in Moscow in 2018, Dhaka in 2019 and another virtual meeting in December 2021.

Russia offers discounted urea fertiliser

Separately, Russia has reaffirmed its commitment to strengthening Bangladesh's food security and expanding bilateral trade, while Bangladesh has expressed interest in importing urea fertiliser and other essential food commodities at competitive prices.

According to a press release issued by the commerce ministry, the issues were discussed yesterday during a meeting between Commerce Minister Khandakar Abdul Muqtadir and a Russian delegation led by Chargé d'Affaires Vyacheslav Sentyurin at the Secretariat.

The Bangladeshi side praised Russia's continued supply of wheat and muriate of potash fertiliser, describing it as important for ensuring the country's food security.

The Russian delegation expressed interest in supplying about 2.8 lakh tonnes of urea fertiliser to Bangladesh Chemical Industries Corporation under a government-to-government arrangement. The delegation proposed supplying the fertiliser at $10 per tonne below prevailing international market prices.

The two sides also discussed expanding cooperation under the existing memorandum of understanding between the Trading Corporation of Bangladesh and JSC FEC Prodintorg for the supply of essential commodities.

Russia further expressed interest in supplying sunflower oil, yellow peas, chickpeas, red lentils and green lentils to Bangladesh.

Muqtadir welcomed Russia's interest in expanding bilateral trade and said Bangladesh is committed to increasing trade, investment and economic cooperation on the basis of mutual benefit.

Russia wants rupee-based trade with Bangladesh to bypass US sanctions

The proposals, aimed at overcoming payment disruptions caused by sanctions on Russian banks, are expected to be discussed at bilateral talks later this year.

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[Isa Khan]

A new opportunity has emerged for Bangladesh to export goods to war-torn Myanmar. However, because of security risks stemming from the conflict and a shortage of US dollars, businesses in Myanmar are unable to make direct payments.

They therefore want to pay for Bangladeshi goods from a third country. Meanwhile, a Bangladeshi company has applied to the National Board of Revenue (NBR) for permission to receive payment from a third country for goods exported to Myanmar. Officials concerned at the NBR told Prothom Alo that the application would be approved.

The company, A One Fish and Marine Food, applied to the NBR in July for permission to receive export proceeds from a third country. In its application, the company said Myanmar businesses were interested in importing cement, potatoes and medicines from Bangladesh.

However, due to security risks amid the conflict and a shortage of US dollars, they were unable to make direct payments. They therefore wanted to make payments for Bangladeshi goods from Singapore, Thailand or Dubai.

Bangladeshi goods are exported to Myanmar through the Teknaf land port.
Bangladeshi traders say many bridges in Myanmar have been damaged by the conflict, while road communications have also become unsafe. Demand for Bangladeshi goods has increased in areas near the border.

Asked about the matter, A One Fish and Marine Food owner MD Alam told Prothom Alo that Myanmar had few cement factories, creating strong demand for cement there.

However, obtaining the necessary no-objection certificates (NOCs) and approvals takes a long time, preventing exporters from fully capitalising on the opportunity. He added that there was also considerable potential for exporting locally produced potatoes and various energy drinks.

How the approval will work​

Officials concerned at the NBR said they initially reviewed A One Fish and Marine Food’s application to receive export proceeds from a third country. They then held discussions with the banking sector. As the main objective is to facilitate exports, a decision has been made to approve the application, which will be communicated shortly.

A relevant official, speaking to Prothom Alo on condition of anonymity, said there was no restriction from Bangladesh Bank on receiving export proceeds from a third country. The application was therefore being approved to facilitate the inflow of foreign currency.

A Bangladesh Bank circular also provides for such an arrangement. A circular issued by its Foreign Exchange Policy Department in 2018 allowed export payments to be made from a country other than the country to which the goods were exported.

However, as of Sunday, the approval had not yet reached the Teknaf Customs Station. As a result, A One Fish and Marine Food owner MD Alam is waiting to begin the exports.
“Even for such an opportunity to earn foreign currency, we have to keep going from office to office and wait,” he said.

Meanwhile, Bangladesh’s exports to Myanmar are growing. According to Export Promotion Bureau (EPB) data, Bangladesh exported goods worth USD 38.9 million to Myanmar in the latest 2025–26 fiscal year, up from USD 34.8 million in 2024–25. Export items included cement and potatoes, as well as yarn and jute products.

Business has declined, but new hopes emerge​

More than 100 traders are involved in the export and import of goods with Myanmar. They see new opportunities arising from the proposed economic corridor linking China with Chattogram through Myanmar.

Their interest in expanding trade has also grown after China proposed establishing the corridor during the Bangladesh prime minister’s recent visit and discussions were held on Rohingya repatriation.
SM Nurul Hoque, former president of the Bangladesh–Myanmar Chamber of Commerce and Industry, told Prothom Alo that trade between the two countries had fallen to around 25 per cent of its previous level following the influx of Rohingya refugees.

“Once the Rohingya issue is resolved, trade will regain momentum. If the new corridor is established, goods could be exchanged directly with China, Thailand and Vietnam as well. Lead time could fall from 10 days to one day,” he said.

On receiving payment from another country after sending goods to Myanmar, Nurul Hoque said many wealthy Myanmar businesspeople were based in Thailand and Singapore. They could therefore make payments from those countries. Such arrangements were permissible under international rules.

The conflict has caused not only a shortage of dollars in Myanmar but also weakened its banking system. Sonali Bank previously had a branch there, but that branch no longer operates. Bangladeshi medicines are also quite popular in the Myanmar market.

Abu Murshed, former president of the Cox’s Bazar Chamber of Commerce, said there were some restrictions on cement exports because of the conflict. There are concerns that the Arakan Army could use the cement to build bunkers, he said.

Goods to go to Myanmar, payment to come from a third country

As the main objective is to facilitate exports, a decision has been made to approve the application, which will be communicated shortly.

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The Bangladesh government has taken an initiative to send relief supplies to Nepal as humanitarian assistance for people affected by the recent devastating landslides and flash floods.

The relief supplies include tents, mosquito nets, packets of dry food, flashlights, shovels, sleeping bags, water containers and body bags, said an official handout today.

Bangladesh to send relief assistance for flood-hit people in Nepal | News Flash

DHAKA, Aug 27, 2026 (BSS) - The Bangladesh government has taken an initiative to send relief supplies to Nepal as

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