High price of oil, lack of commitment of timely shipment and traditional global banking system, sanction of the European Union (EU) on Russia exports and limitation of Eastern Refinery stand in the way of getting Russian oil to ease energy crisis, sources in Dhaka, Moscow and Washington said.
Until the USA gave the waiver over import of Russian oil to some countries until a certain period, the price of the Russian oil was less than the market in the global market.
Meanwhile, Bangladesh has started talks with Russian oil companies over oil import. The country is going through a catch-22 situation as the major oil producing companies are quoting higher prices of the commodity, sources in Dhaka, Moscow and Washington said. Sources said Dhaka should convince Brussels over import of Russian oil as the EU countries have put sanctions on Russia on grounds of Ukraine war.
The reactions of the EU countries over import of Russian oil should also be considered by Bangladesh in the new geopolitical conditions, said diplomats and exporters.
Bangladesh-EU trade stands at €22 billion trade in 2024 and out of that Bangladesh exports stand at 20 and EU stands €2 billion.
Sources said as Bangladesh has never imported Russian oil in the past, Bangladesh will have to ratify amendments regarding payment.
As the US puts sanctions on Russian export, Bangladesh will have special payment system with Russia
Though Dhaka has trade relations with Moscow, the sanction of western countries on Russia is making trade difficult, sources in the commerce ministry said.
Meanwhile, as time is running out regarding import of Russia oil under special USA waiver in a certain period, Bangladesh will have to complete some homework to ease oil crisis, sources said
In the meantime, the EU counties are also putting pressure on Bangladesh to reduce the wide trade gap with them.
The relations between the USA and the EU countries have suffered in recent times over a war imposed on Iran.
Meanwhile, Bangladesh got the USA permission on Saturday to import Russian oil up to a certain period to ease the energy crisis, highly-placed sources said.
The Treasury Department of the USA communicated the positive decision on Bangladesh’s proposal on import of Russian oil Saturday as the six-week war in the middle-east deepens energy crisis, sources in Dhaka, Moscow and Washington said.
Bangladesh has requested the USA to consider the waiver until next three months considering the present situation. However, after completing every step, a minimum one month will be required to bring Russian oil into Bangladesh.
Over the last two weeks, Bangladesh diplomats working in Washington DC have been pursuing the Treasury Department of the USA to make a decision on importing Russian oil very promptly.
Sources said the USA gave some names of the Russian oil companies to be consulted regarding the Russian oil.
The positive USA decision will give a sigh of relief to Bangladesh as the country is going through a deep energy crisis, said an energy ministry official.
Meanwhile, Bangladesh Ambassador to Russia Md Nazrul Islam held talks with a high-level stakeholder of a top Russian oil company and will hold talks with a number of stakeholders of Russian oil companies soon.
However, Bangladesh Petroleum Corporation (BPC) will seek to import the specific variety of Russian oil that the Eastern Refinery of Bangladesh has the capacity to process in Bangladesh. Otherwise, Bangladesh will have to process the oil in the third country, sources said.
Bangladesh Ambassador to Russia Md Nazrul Islam was posted in Qatar before and he has good connections with stakeholders of oil in the global market.
Meanwhile, Foreign Minister Dr Khalilur Rahman in a meeting with US Energy Secretary Chris Wright at the Department of Energy in Washington DC recently has requested the United States to grant Bangladesh a special waiver to import refined diesel and other petroleum products from Russian sources to ease energy pressures.
Finance Minister Amir Khasru Mahmud Chowdhury has said that the ongoing conflict in the Middle East has triggered an abnormal surge in global energy prices, significantly increasing Bangladesh’s subsidy burden. In this context, he said that the government will need to spend approximately Tk 36,000 crore in additional subsidies to import oil and LNG sectors during the March–June period of the current fiscal year.
During the talks, the foreign minister highlighted Bangladesh’s ongoing energy challenges stemming from global supply chain disruptions, particularly ahead of the critical planting season, and stressed the need to ensure uninterrupted fuel supply for farmers and safeguard food security.
US Energy Secretary Wright acknowledged the energy challenges Bangladesh is facing and expressed his country’s commitment to support Bangladesh during these difficult times to help ensure its energy security.
Bangladesh Ambassador to Russia Md Nazrul Islam, also accredited to Kazakhstan, called on President of Kazakhstan, Kassym-Jomart Tokayev, at the latter’s office and discussed matters of mutual interest.
Md Nazrul Islam also held a meeting with Energy Minister of the Central Asian country Erlan Akkenzhenov and discussed the possibility of energy cooperation .
He is expected to meet Erlan Akkenzhenov again this month to discuss the matter of importing oil through government -to-government level.
Md Nazrul Islam held a meeting with Belarus President Alexander Lukashenko this month and explored the potentials of energy cooperation with the CIS country.
