Gas
Bangladesh explores long-term Russian gas supplies
Dhaka has engaged with Moscow to secure sustained deliveries of liquefied natural gas and petroleum gas amid rising domestic requirements.
Key points
- Bangladesh discusses long-term energy imports during bilateral talks in Dhaka.
- Financial transactions face hurdles due to international sanctions on Russian entities.
- Both nations reaffirm commitment to ongoing cooperation on the Rooppur nuclear project.
According to The Business Standard, Bangladesh is pursuing long-term import arrangements for liquefied natural gas and petroleum gas from Russia. Officials from both states convened in Dhaka for the fifth session of their joint commission on economic and technical cooperation to evaluate these energy proposals. Russian state-backed enterprise Gazprom indicated readiness to connect Petrobangla with facilities managing the Sakhalin-2 initiative. Discussions also covered potential shipments originating from the Portovaya facility and the Ust-Luga complex.
Beyond hydrocarbon trade, the discussions addressed alternative settlement frameworks. International sanctions stemming from geopolitical conflicts have impeded conventional banking channels, complicating financial exchanges between the two nations. This disruption has notably affected repayments for the Russian-financed Rooppur Nuclear Power Plant. Funds allocated by Bangladesh Bank cannot reach designated Russian accounts through standard routes. Consequently, Moscow has proposed various countermeasures, including digital financial instruments and direct institutional engagement, though entities like the Exim Bank of Russia remain under United States restrictions.
Despite financial bottlenecks, bilateral commercial ties continue to expand in multiple sectors. Bangladesh Bank records indicate that import expenditures from Russia reached $1.36 billion during the 2025 financial year. Gazprom maintains an operational footprint in the country, having drilled exploration wells in Bhola since 2012. During the recent business dialogue, the Federation of Bangladesh Chambers of Commerce and Industry formalised an agreement with the Russia-Bangladesh Business Council to strengthen commercial ties, aiming to eliminate trade barriers and foster joint industrial initiatives.
Why it matters
The pursuit of diversified hydrocarbon imports highlights the ongoing adjustments emerging economies must navigate within constrained global supply networks. According to World Bank figures from 2024, Bangladesh achieves near-universal electricity access at 99.5 percent, yet clean cooking access remains restricted at 29 percent, underscoring the critical need for stable gas supplies. For international energy investors, the reliance on alternative payment architectures to bypass Western sanctions signals a shifting paradigm in cross-border commodity trade. Policymakers across developing regions will monitor these settlement mechanisms closely as precedents for managing sovereign obligations and energy security under restrictive financial regimes.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
65.3% of electricity in Bangladesh came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
