Bangladesh News Bangladesh in trouble after purchasing 2 Russian helicopters

[Isa Khan]

The deposed Awami League government had purchased two helicopters from Russia worth Tk 4 billion. Bangladesh has already paid Tk 2.98 billion for the choppers. However, Bangladesh cannot bring those helicopters due to the US sanction on Russia.

There are possibilities of diplomatic tensions with the US if Bangladesh receives the helicopters from Russia as per the agreement. At the same time, Bangladesh may face a huge financial loss if it cancels the agreement with the Russian agency.

Sources in the home ministry say the ministry has written to the foreign ministry seeking diplomatic solution over the matter.

Speaking to Prothom Alo on condition of anonymity, a reliable official from the foreign ministry said they had received the letter from the home ministry. They have asked the law ministry to review the terms and conditions of the agreement with Russia.

The letter sent to the foreign ministry reads the helicopters purchased by Bangladesh are of MI-171A2 model. The supplier, JSC Russian helicopters, had chartered a cargo plane to deliver the two helicopters, one in February and the other in April. However, the Bangladesh government discarded the process due to the US sanction on the supplying agency.

According to sources at the Ministry of Home Affairs, during the Awami League government, a decision was made to purchase two helicopters from Russia to enhance police capacity in combating terrorism in remote areas.

On 10 February 2021, a memorandum of understanding (MoU) was signed at the police headquarters between Bangladesh Police and Russian Helicopters.

The then inspector general of police (IGP), Benazir Ahmed, and the company’s director general, Andrey I Boginsky, signed the MoU via videoconference.

On 6 October 2021, the Executive Committee of the National Economic Council (ECNEC) approved the proposal for purchasing the helicopters.

Later, on 19 November that year, a formal agreement was signed at the police headquarters in Dhaka. At the time, a press release from the police headquarters stated that the two helicopters were of a civilian nature and that they would be used to form a police air wing.

Agreement despite US sanction​

In April 2021, the United States imposed sanctions on several Russian state-owned enterprises. Yet, in November of the same year, the Bangladesh government signed a contract with JSC Russian Helicopters, one of the sanctioned companies. This has raised questions as to why Tk 2.98 billion was paid despite being aware of the sanctions.

Home ministry sources say that agreement has put the interim government under some trouble. Efforts are underway to find a way to bring in the two helicopters.

Ataur Rahman Khan, additional secretary (police wing) of the home ministry, told Prothom Alo that they are exploring the option of requesting the United States through diplomatic channels to allow the delivery of the helicopters.

Financial loss likely to rise​

It was stated in the letter sent to the foreign ministry that the two helicopters have been kept at a Russian warehouse. There is also a maintenance cost for that.

According to the agreement, if Bangladesh does not take delivery of the helicopters, the financial loss could increase further. A clause in the contract states that if the deal is cancelled, the supplier can claim the entire amount already spent.

In case of a dispute, the matter will be settled at the Singapore International Arbitration Centre (SIAC). The police headquarters fears that if Bangladesh refuses the helicopters, the company may file a case.

In this context, the home ministry has informed the foreign ministry to try to persuade the United States. As an argument, it has been stated that the two helicopters are civilian in nature and will be used in disaster management. The helicopters were manufactured specifically for Bangladesh and cannot be delivered to any other country.

However, the foreign ministry said in their opinion that if Bangladesh proceeded towards the delivery of the helicopters as per the agreement, it may impact the bilateral relationship between the US and Bangladesh.

‘Bangladesh can appeal to the US’​

During the 15 years of the previous Awami League government, several military weapons were purchased from Russia. In 2013, a loan agreement of USD 1 billion was signed with Russia for the procurement of military equipment.

In addition, Bangladesh is implementing the Rooppur Nuclear Power Plant project with Russian loans and technical assistance. This is the country’s largest project, and Bangladesh is also facing US sanctions in financial transactions related to it.

A source at the Economic Relations Division said the money repaid by Bangladesh against Russia’s loan for Rooppur has now been kept in a special account with Bangladesh Bank, as the funds cannot be transferred to Russia due to sanctions. Bangladesh Bank once attempted a payment but refrained from doing so again, considering the risks.

Former Bangladesh ambassador to the United States M Humayun Kabir told Prothom Alo that the government could appeal to the US for a waiver.

He further said that the government may highlight the reality that the helicopters are being procured for civilian purposes and that Bangladesh would face financial losses if they are not brought in.

The US, he hoped, would surely consider the situation and might grant approval.

Bangladesh in trouble after purchasing 2 Russian helicopters

The previous government signed an agreement with Russia to purchase two helicopters. Bangladesh has already paid Tk 2.98 billion under the agreement. Now Bangladesh cannot bring the two helicopters due to the US sanction on Russia.

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