Bangladesh is interested in securing long-term supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) from Russia to meet its growing energy demand, with the two countries discussing potential supplies as part of an ethane-rich gas processing complex, The Business Standard reported from Dhaka on Thursday, November 5.

Source: The Business Standard

The issues were discussed at the fifth meeting of the Bangladesh–Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation (IGC) in Dhaka on November 5, which continues on November 6. The Russian delegation is led by Ilya Shestakov, head of Russia's Federal Agency for Fisheries and chairperson of the Russian side of the commission, and includes senior officials from the energy, economic development and education ministries, according to the Russian Embassy in Dhaka, reported by Bangladesh Sangbad Sangstha (BSS). The commission was established in 2017 and last met in March 2023 by videoconference.

Source: BSS via Bangladesh News Gazette

Sakhalin-2, Portovaya and Ust-Luga on the table

Importing LNG from Russia's Sakhalin-2 project and the Portovaya LNG plant came up during the discussions, as did the possibility of supplies from the Ust-Luga plant. Gazprom, the Russian state-owned energy company, said it was ready to facilitate direct discussions between Petrobangla — Bangladesh's state oil, gas and mineral corporation — and Sakhalin Energy on LNG supplies from Sakhalin-2, if Bangladesh is interested, The Business Standard reported.

The talks come as Bangladesh scrambles to secure gas cargoes: the Middle East war and supply cuts by its traditional LNG suppliers have left the country exposed on the volatile spot market, and in August Petrobangla signed a 13-year agreement with US firm Gunvor for 117 cargoes between 2026 and 2038. Bangladesh relies heavily on imported LNG as its domestic gas production declines.

Russia pushes alternative payment channels

Russia placed particular emphasis on establishing alternative payment mechanisms for bilateral trade, as Western sanctions have disrupted transactions through conventional international banking channels. Moscow is interested in direct engagement between Russian banks and Bangladeshi financial institutions, including the use of digital financial instruments to settle trade. The proposal also reflects difficulties in repaying instalments on the Russian-funded Rooppur Nuclear Power Plant: according to Bangladesh Bank sources cited by The Business Standard, funds deposited with Sonali Bank for repayment of Russia's loan cannot be transferred to the relevant Russian bank because of sanctions.

Russia had previously proposed opening branches of Russian banks in Bangladesh, settling trade in Indian rupees and building an independent payment infrastructure between the two countries. According to Economic Relations Division (ERD) documents, Exim Bank of Russia wants to strengthen cooperation with Bangladeshi financial institutions — but both Exim Bank of Russia and its parent, the Russian Export Centre, are under US sanctions, creating legal and financial complications for direct cooperation. Bangladesh paid $1.36 billion for imports from Russia in FY25 — yaani about $136 crore — according to Bangladesh Bank data.

Rooppur, fertiliser and a business MoU

Russia has been a longstanding partner in Bangladesh's energy sector through the Rooppur nuclear power project, for which Moscow is providing financing, technology and technical assistance, and Gazprom has been involved in gas exploration in Bangladesh since 2012, drilling several wells in Bhola. At the latest meeting, both sides agreed to continue cooperation in oil and gas, the peaceful uses of nuclear energy and the timely implementation of Rooppur. ERD documents also proposed a memorandum of understanding between Russia's state development corporation VEB.RF and Invest Bangladesh on investment cooperation.

On the sidelines, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Russia-Bangladesh Business Council signed an MoU on November 5 at the FBCCI office in Motijheel, Dhaka, to promote trade, investment and business cooperation through information exchange, joint projects, trade fairs and business missions. Shestakov said Bangladesh was one of Russia's leading trading partners in South Asia, and Russia is interested in expanding supplies of agricultural products, food and fertiliser to Bangladesh while exploring cooperation in energy, IT, cybersecurity and e-governance. Russian Ambassador Alexander Khozin stressed the need to address regulatory procedures, logistics and market-access barriers.