In FY ’23, Bangladesh’s exports to the promising market of Russia experienced a significant decline of 27.87 per cent compared to the previous year, primarily due to the ongoing Russia-Ukraine war.
This is as per reports, which added Bangladesh’s exports to Russia during this period amounted to US $ 460.39 million, a drastic decrease from US $ 638.31 million recorded in FY ’22.
Furthermore, the latest statistics from the Export Promotion Bureau (EPB) reveal that Bangladesh’s exports to Russia in the just-concluded fiscal year were the lowest in the past five consecutive fiscal years.
The decline in Bangladesh’s exports to Russia began in March 2022 when the United States and the European Union imposed multiple sanctions, including a ban on the use of SWIFT (Society for Worldwide Interbank Financial Telecommunication), against Russia following its invasion of Ukraine. These sanctions severely limited Russia’s access to the global financial network, isolating the nuclear power nation from the rest of the world.
Commenting on the situation, Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that while exports to the Russian market had initially increased, they later declined due to the war. He explained that the US and its allies imposed sanctions on Russia, and the SWIFT ban prevented direct exports.
Additionally, international brands operating in Russia ceased importing from Bangladesh as they had closed down their stores in the country.
