Russia Considers Rupee Trade with Bangladesh to Bypass US Sanctions

Russia's efforts to bypass US sanctions have led it to consider settling payments with Bangladesh in Indian rupees. This move will not only boost the global footprint of the Indian currency but also reduce dependency on the US dollar.

Due to US and European sanctions, Russia's international payment channels are facing significant roadblocks. To overcome this, Moscow is exploring alternative trade and payment routes. The Kremlin has already established a rupee-ruble payment corridor with New Delhi, which accounts for over 95% of their bilateral trade, worth approximately $70 billion.

Russia aims to channelize its excess rupee funds in Indian banks to settle loan installments owed by Bangladesh. This will enable Dhaka to repay the loans without creating a new payment infrastructure. Experts believe that this move will not only benefit Russia and Bangladesh but also create a triangular trade and payment ecosystem between India, Bangladesh, and Russia.

The Rooppur Nuclear Power Plant project in Bangladesh is one of the significant infrastructure projects funded by Russia. The project's total generation capacity is 2,400 megawatts, with two 1,200 MW VVER-1200 reactors. However, due to US sanctions on Russian payment systems, Bangladesh has been unable to repay its loan installments to Moscow.