$7.6m RMG export proceeds stuck in Russia

Business Report :

Bangladeshi ready-made garment (RMG) exporters have been unable to repatriate $7.6 million from Russia due to transaction complications, Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said on Wednesday.

Speaking at a press conference, Hatem said, “Fourteen Bangladeshi garment exporters have been waiting for over a year to recover $7.6 million in export proceeds from Russia.

The primary reason is transaction complications that have prevented Russian buyers from making payments to Bangladesh.” To resolve the issue, he proposed that the unpaid amount be adjusted against Bangladesh’s outstanding dues to Russia for the Rooppur Nuclear Power Plant, or that a barter system be introduced as an alternative.

It is worth noting that Bangladesh has also been facing difficulties in making payments to Russia for the Rooppur project due to transaction issues arising from US sanctions imposed after the Russia-Ukraine war began.

A barter system involves direct exchange of goods and services between parties without using money.

The press conference was held to present the position of the Mohammad Hatem-led panel-known as the Progressive Knit Alliance-prior to the upcoming BKMEA elections scheduled for May 10. Hatem currently serves as the association’s president.

In response to a question, Hatem noted that the ongoing India-Pakistan conflict would not significantly affect the sourcing of raw materials for Bangladeshi garment exporters, though it could disrupt border trade.