Over an extended period, Bangladesh has consistently imported food items from a range of countries- Argentina, Ukraine, Australia, India, and Nepal. The Ministry of Foreign Affairs officially informed the Ministry of Commerce on March 14, 2023, about Russia’s government’s offer to export food products to Bangladesh
Bangladesh and Russia established diplomatic relations on January 25, 1972, shortly after Bangladesh gained independence from Pakistan. Following the Soviet Union’s collapse, Bangladesh has nurtured bilateral relations with Russia. In Dhaka, Russia has its embassy, and there’s a consulate general in Chittagong. Meanwhile, Bangladesh maintains its embassy in Moscow.
Russia’s role in the great liberation war of Bangladesh in 1971 is etched in the minds of people from both Bangladesh and Russia. Presently, Bangladesh and Russia stand shoulder to shoulder in promoting shared values in various regional and international platforms, including their united efforts at the United Nations to ensure global peace and security.
You can also read: Why is Russian Foreign Minister Lavrov suddenly visiting Dhaka?
Russian Foreign Minister is scheduled to visit Bangladesh
Sergey Lavrov, the Russian Foreign Minister, is expected to make a visit to Bangladesh on September 7-8, 2023, for discussions on various matters encompassing bilateral, regional, and global issues. According to a source in Moscow, the Russian Foreign Minister has plans to meet with Prime Minister Sheikh Hasina alongside his official meeting with Foreign Minister Dr. AK Abdul Momen.
Lavrov had a planned trip to Bangladesh on November 23 last year, primarily for his attendance at the 22nd IORA Council of Ministers meeting. Regrettably, the visit was called off and later, Foreign Minister Momen and Sergei Lavrov, engaged in a telephone discussion, addressing their mutual interest in strengthening bilateral relations between Bangladesh and Russia.
However, there has been no official statement from the Ministry of Foreign Affairs in Dhaka or the Russian Embassy here regarding Lavrov’s scheduled visit.
Russia-Bangladesh Economic and Trade Connections
The Agreement between the Government of the Russian Federation and the Government of the People’s Republic of Bangladesh, aimed at establishing the Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation, was signed on March 1, 2017. Its role includes the promotion of diversified bilateral trade, economic, scientific, and technical partnerships among the two countries’ business communities, as well as the removal of trade barriers.
Rooppur Power Plant
In November 2011, an intergovernmental agreement was reached in Dhaka for the construction of the Rooppur Nuclear Power Plant (NPP) in Pabna. The main stage of Rooppur NPP construction was formally initiated with the signing of the General Contract on December 25, 2015. To support the construction of Rooppur NPP, Russia extended a credit of nearly 12 billion USD to Bangladesh. Moscow saw the signing of the Intergovernmental Agreement on the allocation of the Russian state loan for funding the primary phase of Rooppur NPP construction on July 26, 2016.
The Rooppur project seeks to stabilize electricity prices and diminish Bangladesh’s dependence on high-cost power generation relying on imported fuel sources.
Aleksandr Mantytsky, the Russian Ambassador to Bangladesh, on his visit to Bangladesh in June 2023, emphasized that the Rooppur Nuclear Power Plant, a major endeavor by the State Corporation Rosatom, will enhance Bangladesh’s energy security.
Additional trade impacts of Russia with Bangladesh
As of January 2022, Russia’s top commodities exported to Bangladesh comprised Wheat ($8.46M), Steam Boilers ($5.77M), Iron Structures ($1.82M), Valves ($1.62M), and Scrap Iron ($759k), whereas its leading imports from Bangladesh during the same month included Knit T-shirts ($12.8M), Knit Sweaters ($11.7M), Non-Knit Women’s Suits ($9.82M), Non-Knit Men’s Suits ($8.04M), and Other Knit Clothing Accessories ($4.88M).
Recently, Bangladesh inked a deal with Russia to acquire military equipment valued at approximately one billion dollars. This agreement was formalized during the visit of Bangladesh Prime Minister Sheikh Hasina to Moscow, where she met with Russian President Vladimir Putin. Russia supplied Bangladesh with the Metis-M tank-destroyer missile in 2013. In 2015 and 2016, Bangladesh added 17 Yak-130 training aircraft from Russia to its inventory. In the same year, 2016, the country also invested in 6 MI-161 SH helicopters from Russia.
Bangladesh is actively exploring the possibility of sourcing DAP and potassium fertilizer from Russia. A memorandum of understanding is on the horizon as Bangladesh shows interest in importing fertilizer from Russia. Russia has been a trusted supplier of MOP fertilizer to Bangladesh since 2013.
Exports from Bangladesh to Russia
In January 2022, the increase in Russia’s year-on-year imports from Bangladesh was driven primarily by Knit Clothing Accessories (rising by $4.86 million or 29.3 thousand percent), Knit Sweaters (experiencing a $3.03 million increase or 35.1%), and Knit Men’s Undergarments (escalating by $1.98 million, equivalent to a remarkable 211% rise).
Russia has expressed a strong desire to import mangoes from Bangladesh. According to statistics provided by the Bangladesh Bureau, the country yielded an impressive 1.5 million tonnes of mangoes last year, valued at Tk 10,000 crore. This accomplishment has helped Bangladesh to secure the seventh rank globally in mango production.
Upcoming Investment Opportunities
Bangladesh has made an appeal to Russia to participate in the restoration of Ishwardi airport through investment.
Due to the presence of brown rot disease in Bangladeshi potatoes, Russia has upheld a ban on their import since 2014. However, in light of Bangladesh’s growing production of premium potatoes, Russia could potentially reconsider resuming potato imports.
Russia advocates for G-to-G trade proposals
Over an extended period, Bangladesh has consistently imported food items from a range of countries- Argentina, Ukraine, Australia, India, and Nepal. The Ministry of Foreign Affairs officially informed the Ministry of Commerce on March 14, 2023, about Russia’s government’s offer to export food products to Bangladesh.
Their main objective is to deliver various food products like yellow peas, chickpeas, red lentils, green lentils, sunflower oil, and more to Bangladesh under a G2G framework. Importing these goods could pique the interest of Bangladesh’s government, presenting an opportunity to provide them to low-income citizens at reasonable rates through the Trading Corporation of Bangladesh (TCB).
Moscow to supply LNG
Russia and Bangladesh have been partners in the energy sector since the 1970s. The Ghorasal and Siddhirganj power plants, constructed with Soviet aid, continue to play a pivotal role by supplying approximately 20% of Bangladesh’s total electricity.
Russia has suggested providing Bangladesh with liquefied natural gas (LNG) to address its enduring energy requirements.
Presently, Bangladesh experiences a gas demand of 3,500 million cubic feet per day, yet grapples with a notable supply shortfall. Within this context, 2,200 million cubic feet of gas is derived domestically, with another 600 million cubic feet being imported through LNG.
By 2030, Bangladesh wants to establish 100 economic zones and is actively encouraging Russian investments in Export Processing Zones (EPZ) and Hi-tech parks. Additionally, Bangladesh is exploring collaborative possibilities in sectors such as fertilizer manufacturing, LNG projects, fuel refineries, leather processing units, pharmaceuticals, and tourism ventures.
In conclusion, it is evident that Russia considers the People’s Republic of Bangladesh a crucial ally in South Asia, with ample opportunities ready to be explored to their maximum extent.
