Media report said shipment of readymade garments from Bangladesh to Russia is facing hurdles and payments from buyers are facing uncertainty as the country’s war against Ukraine rages. Over 150 local apparel exporters are facing this hurdle as Bangladesh risks losing a key emerging market if the conflict persists and it would dampen Bangladesh’s efforts to diversify exports. Bilateral trade between Bangladesh and Russia is worth more than $1 billion and in July-January period RMG exports grew by more than 36 per cent. But many garment suppliers are not receiving export payment in the past weeks as several Russian banks have been banned from using SWIFT, the global payments messaging system to implement payment.
It came into effect after the European Union said it was excluding seven Russian banks from the SWIFT Interbank Financial Telecommunication system. The US recently announced sanctions on four large Russian banks and as a follow up Bangladesh government has also imposed ban on several local banks to deny inter-bank payment system. The setback is blocking trade when many exporters have already produced items for the Russian buyers or sent goods to Chattogram Port for shipment. Shipping lines are not also taking the goods on board and courier service is also denying it because of the sanctions related to the war.
The plight of the war has already started to hit our economy at a time we have substantial trade including shipment related to Ruppur nuclear power plant. One Gazipur-based garment exporter said the ban came when he is preparing $5 million worth of orders from Russia buyer in November. He has already shipped men’s and women’s tops, casual shirts and other woven garment. But the export documents were sent back last week from Hungary because of the SWIFT ban. In another case garment amounting to $3 lakh order are lying at Chattogram Port as no shipping company is willing to transport at buyer’s port. In another case 11 lakh pieces of garment are waiting to be manufactured as per buyers order. Manufacturers have procured raw materials from China but buyers are asking for delay.
The new blow had started hitting hard when our exports are bouncing back after the Covid-19 fallout. Exporters are facing new uncertainty which may not stop any time soon.
