Moscow again offers food deal to Dhaka

Russia for the second time this year has proposed to sell its food products to Bangladesh in an effort to diversify its export market amid sanctions imposed by the West over its invasion of Ukraine.
The Russian Embassy in Bangladesh sent a letter to the country's foreign ministry proposing to supply a range of food items, including red lentils, green lentils, sunflower oil, yellow peas and chickpeas.
The letter said that the Russian state-run company Prodintorg is interested in expanding its cooperation with Bangladesh by supplying those food products on a government-to-government (G2G) basis.
"We would like to take the opportunity to supply these food commodity items at the best competitive and comprehensive price," the letter said.
The foreign ministry has forwarded the letter to the commerce ministry for the next course of action.
The proposal comes at a time when Bangladesh is facing rising food prices due to the war in Ukraine. The country is a major importer of wheat and edible oil, both of which have seen their prices soar since the start of the conflict in February last year.
The commerce ministry is currently examining the Russian proposal and is considering discussing it with other ministries and agencies.
Prodintorg has been supplying mineral fertilisers and grains on a G2G basis since 2013. It is the only Russian state-run company to supply agricultural products and fertilisers to Bangladesh on a G2G basis, according to the letter.
"Since the beginning of cooperation, the state agency has already supplied to Bangladesh more than 1.3 million tonnes of potash fertilisers and more than 1.5 million tonnes of milling wheat," mentioned the letter.
However, the commerce ministry said that it would need to take into account the sanctions imposed on Russia before making any decision.
"We have received a proposal from the Russian state entity regarding its interest in selling various food items to Bangladesh. Now we are scrutinising it," a senior official of the commerce ministry told the FE.
"This is a very important proposal for Bangladesh given the present kitchen market situation."
The commerce ministry official said they are trying to increase the supply of essential items in the local market as the commodity market is already overheated.
Edible oil, sugar, lentil etc are already pricier in the kitchen markets, hitting hard the consumers. The state-run agency trading corporation of Bangladesh currently procures different essential items from local and foreign sources for selling its drive to 10 million low-income group people.
"The commerce ministry is examining the matter and is considering discussing with stakeholders, including other ministries concerned, Bangladesh Bank and relevant state agencies, for reviewing the proposal," the official said.
Apart from the sanctions, the absence of direct banking transactions between Dhaka and Moscow could also pose a challenge to any trade deal between the two countries, added the official.
The Russian-Ukraine war has dealt a severe blow to global food security through its impacts on wheat, oil and fertiliser exports, thus contributing to the skyrocketing inflation of all essential items.
The US and the EU imposed multiple sanctions, including a SWIFT ban, against Russia following its invasion of Ukraine, almost cutting the nuclear power off from the rest of the world.

[email protected]