Since its independence in 1971, Bangladesh has fostered a strong diplomatic relationship with Russia, a nation that has been a steadfast ally throughout its history. From supporting Bangladesh during its liberation war to aiding in post-war reconstruction, Russia has played a pivotal role in the country’s development. Today, the economic ties between the two nations continue to grow, reflecting a partnership that has stood the test of time and geopolitics.
The diplomatic relations between Bangladesh and Russia date back to the days of the Soviet Union. The Union of Soviet Socialist Republics (USSR)’s support was crucial during Bangladesh’s liberation war, providing not only moral backing but also substantial material aid. This historical bond laid the foundation for a relationship that has only deepened over the decades. Following the dissolution of the Soviet Union in 1991 and the emergence of the Russian Federation, Bangladesh and Russia continued to strengthen their diplomatic and economic ties.
The economic relationship between Bangladesh and Russia has seen significant growth, particularly in recent years. In 2022, Russia was excluded from the international payment system SWIFT following the outbreak of war with Ukraine, accompanied by extensive economic sanctions from Western countries. This geopolitical shift opened new avenues for Bangladesh to enhance its business potential with Russia and other former Soviet states.
One of the key areas of cooperation has been in the agricultural sector. Last year, Bangladesh imported 2.7 million tons of wheat from Russia, reflecting the importance of Russian agricultural products in meeting Bangladesh’s food security needs. Additionally, to enhance agricultural productivity, Bangladesh has increased its imports of fertilizer from Russia. This collaboration is essential for Bangladesh’s efforts to modernize its agricultural sector and ensure food security for its growing population.
Energy cooperation is another cornerstone of the Bangladesh-Russia relationship. Bangladesh has started importing oil from Russia, diversifying its energy sources and reducing dependency on traditional suppliers. Moreover, Gazprom, the Russian energy giant, has been involved in gas exploration activities in Bangladesh for several years. This collaboration not only boosts Bangladesh’s energy security but also strengthens its energy infrastructure with Russian expertise.
The Rooppur Nuclear Power Plant (RNPP) stands as a landmark project in Bangladesh-Russia relations. Supported by Russian financial and technical assistance, the construction of this nuclear power plant is nearing completion. Approximately 90% of the work has been finished, and the first unit is expected to be connected to Bangladesh’s national grid within the year. Russia is providing a loan of $11.38 billion for the project, showcasing its commitment to helping Bangladesh meet its growing energy demands sustainably.
While Bangladesh has traditionally imported various products from Russia, the current geopolitical climate presents new opportunities for Bangladesh to increase its exports to Russia. The exclusion of Russia from the international payment system SWIFT and the imposition of extensive economic sanctions by Western countries have opened avenues for Bangladesh to enhance its trade with Russia.
Russia has shown a keen interest in importing a range of Bangladeshi products, including ready-made garments. With many international brands deciding to leave Russia following the sanctions, Bangladesh’s garment industry stands to benefit significantly. Russian investors are interested in sourcing garments from Bangladesh, which is the world’s second-largest exporter of ready-made garments. This shift presents a significant opportunity for Bangladesh to expand its market share in Russia and fill the gap left by Western brands.
Apart from garments, Russia is also interested in importing tobacco, frozen shrimp, agricultural products, and processed food from Bangladesh. The agricultural sector in Bangladesh has made significant strides in recent years, with the country now ready to export agricultural and food products after meeting domestic demand. The interest from Russia in these products highlights the potential for expanding bilateral trade in this sector.
Jute, often referred to as the “golden fiber,” has historically been one of Bangladesh’s primary export products. Russia’s interest in jute and jute products presents an opportunity for Bangladesh to revive this traditional industry. With eco-friendly and sustainable products gaining popularity globally, the demand for jute products is expected to rise, and Russia could become a significant market for Bangladesh’s jute exports.
The exclusion of Russia from the SWIFT system posed significant challenges for bilateral trade. However, China has played a crucial role in mitigating these issues by engaging Russia in its Cross-Border Interbank Payment System (CIPS). The inclusion of the Chinese currency Yuan in Bangladesh’s payment system facilitates this process, making it easier for Bangladesh to join CIPS and conduct trade with Russia.
Alexey Zakharov, a research fellow at the Institute of Oriental Studies at the Russian Academy of Sciences, noted that without China’s involvement, it would have been impossible for Russia to maintain its financial activities with South Asia. The increased use of China’s financial infrastructure has become vital for Russian economic projects, ensuring the continuity of trade in agriculture and energy sectors.
On May 27, a meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and a Russian business delegation underscored the mutual interest in strengthening commercial and business relations. The delegation, led by Russian Trade Commissioner Dr. Alexander Rybas, discussed the potential for increased cooperation. FBCCI President Mahbubul Alam emphasized the long-standing friendly relationship between the two countries and highlighted the Rooppur Nuclear Power Project as a testament to their mutual cooperation.
FBCCI President also pointed out the vast commercial potential in sectors such as pharmaceuticals, light engineering, plastics, processed food, and more. He urged Russian investors to explore opportunities in Bangladesh’s Special Economic Zones, emphasizing the country’s status as the world’s second-largest exporter of ready-made garments and its growing reputation in renewable energy and eco-friendly technologies.
To avoid the geopolitical scrutiny of the Western world, Bangladesh should consider the Russian market as an alternative trade route. Strengthening diplomatic relations with Russia is crucial, and Prime Minister Sheikh Hasina has a pivotal role to play in this regard. While her recent visit to China has fortified Bangladesh-China relations, a similar initiative to visit Russia could enhance Bangladesh’s commercial potential and diplomatic standing.
The enduring friendship between Bangladesh and Russia is a testament to the power of historical alliances and mutual economic interests. As both nations navigate the complexities of the current geopolitical landscape, their strengthened economic and diplomatic ties promise a future of shared prosperity and growth. By leveraging opportunities in trade, energy, and technology, Bangladesh and Russia can continue to build a robust partnership that benefits both nations and contributes to regional stability and development. The relationship between Bangladesh and Russia is not just a relic of the past but a dynamic and evolving partnership that holds immense potential for the future.
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