The 4th Session of the Bangladesh-Russia intergovernmental commission on trade, economic, scientific, and technical cooperation concluded on March 15, 2023. The session was held virtually through video conferencing and began on March 12.
The Russian side was led by ILYA V. Shestakov, head of the federal agency for fisheries co-chair of the commission, while Bangladesh Side was led by Sharifa Khan, Secretary, of the Economic Relations Division (ERD), and Co-Chair of the Commission.
The intergovernmental commission was established on March 1, 2017, and since then, the commission meetings have been regularly held to explore and enhance trade and economic cooperation between Bangladesh and Russia.
Areas of Discussion
The session explored different areas of cooperation in trade and economics, including Industrial Power and Energy, Atomic Energy, Agriculture, Fisheries and Livestock Sector, Financial, Geological Research, and ICT, Transport, and Education Sectors. Various ways of cooperation were explored and agreed upon to ensure mutual benefits.
However, no final decision was made with regard to any areas in the meeting, according to ERD officials. Bangladesh has taken a cautious stance in making any final decisions with regard to trade and investment with Russia amid international sanctions imposed on Russia.
Russian Financing of Bangabandhu Satellite-2
Russia is actively considering financing the Bangabandhu Satellite-2 project and has assured Bangladesh of completing the loan sanction process fast, according to Shahjahan Mahmood, chairman and CEO of the Bangladesh Satellite Company Limited.
Bangladesh has asked Russia to lend $345 million for the Bangabandhu Satellite-2, reported The Business Standard.
Proposed LNG Export and Modernisation of Ghorashal
Russia has proposed exporting liquefied natural gas (LNG) to Bangladesh as the latter seeks to meet its long-term energy needs. Additionally, Russia has proposed exporting gas pipelines and other equipment to Bangladesh, as well as modernising the country’s Ghorashal Unit-1 and Unit-2.
Direct Payment System for Rooppur Nuclear Power Plant
Russia has proposed a direct payment system bypassing the global standard SWIFT to settle the dues for Rooppur nuclear power plant as the Soviet nation looks to navigate the sanctions from the West following the Ukraine war. The existing Russian-Bangladeshi interbank infrastructure is not sufficiently robust to service all mutual foreign trade settlements without the involvement of intermediary banks from third countries, said the Bank of Russia in a letter to Bangladesh Bank Governor Abdur Rouf Talukder ahead of the three-day virtual meeting.
Repealing of Section of Rooppur Nuclear Treaty
During the 4th session of Bangladesh-Russia Commission, Bangladesh and Russia also discussed repealing the section of the Rooppur Nuclear Treaty, according to which Bangladesh has to pay a fine even if the Russian contractor makes a delay in completing any assigned task. Bangladesh has already paid Tk 78 crore for this purpose. However, no decision was made regarding the clause of the treaty during the meeting.
