Russia proposes rupee-based trade with Bangladesh amid US sanctions

Russia has proposed conducting trade with Bangladesh in Indian rupees and establishing a dedicated payment system to bypass transaction barriers caused by United States sanctions on Russian banks, officials said.

The proposal, which includes opening a Russian bank branch in Dhaka, is expected to be discussed at a Bangladesh-Russia intergovernmental commission meeting in September or October.

Sanctions have prevented Bangladesh from transferring loan repayments for the Russian-financed Rooppur Nuclear Power Plant. Bangladesh has instead deposited installments into a Russian account at Sonali Bank, but the money cannot be transferred to Russian banks.

Bangladesh plans to prioritize Russian technology transfers and seek cooperation in energy, agriculture, digital commerce, education and logistics.

Separately, Russia offered to supply about 280,000 tonnes of urea fertilizer at $10 per tonne below prevailing international prices. Commerce Minister Khandakar Abdul Muqtadir said Bangladesh supports expanding bilateral trade, investment and economic cooperation.