**Russia Considers Indian Rupee Payments for Bangladesh's Rooppur Nuclear Plant Amid US Sanctions**
Russia has put forward a proposal to facilitate trade payments with Bangladesh in Indian rupees, aiming to navigate the challenges posed by US sanctions on Russian banks. This development is particularly pertinent to the Rooppur Nuclear Power Plant, a significant project financed by Russia, which has faced payment disruptions due to these sanctions.
According to local media reports from Bangladesh, Dhaka has struggled to make loan repayments for the Rooppur plant, which is estimated to cost around $13 billion. Russia is financing approximately 90% of this amount through a government loan. The project includes long-term commitments from Russia to supply nuclear fuel, provide technical maintenance, and manage spent nuclear fuel.
The proposal from Moscow is expected to be a key topic during upcoming bilateral discussions between Bangladesh and Russia later this year. Officials from Bangladesh’s Economic Relations Division (ERD) have indicated that the issue of payment mechanisms remains unresolved, highlighting the urgency of finding a solution.
In addition to the rupee payment mechanism, Russia has suggested establishing a bilateral payment infrastructure and has renewed its request to open a local branch of a Russian bank in Bangladesh. However, sources have noted that trade between the two nations, excluding the nuclear power project, is relatively limited, which raises questions about the feasibility of creating a new payment system from the ground up.
The Rooppur Nuclear Power Plant, which features two reactors with a combined capacity of 2,400 megawatts, is expected to begin commercial operations as early as next month, with the first reactor projected to supply around 300 megawatts initially. This project is a cornerstone of Bangladesh's efforts to enhance its energy production capabilities and reduce reliance on fossil fuels.
In the broader context of international trade, it is worth noting that both India and Russia have been conducting a portion of their bilateral trade in Indian rupees. Similarly, Bangladesh has also engaged in trade with India using the Indian rupee, alongside the US dollar and other foreign currencies. During the July-May period of the current fiscal year, Bangladesh exported goods worth approximately $245 million to Russia, according to data from the Export Promotion Bureau of Bangladesh.
As the geopolitical landscape continues to evolve, the potential for alternative payment mechanisms such as the Indian rupee could play a crucial role in facilitating international trade for countries facing sanctions or other financial barriers. The upcoming discussions between Bangladesh and Russia will likely provide further clarity on the viability of this proposed payment system and its implications for the Rooppur Nuclear Power Plant and beyond.