Bangladesh is in discussions with Russia to procure crude and refined oil, Russian Ambassador to Bangladesh Alexander Mantytskiy said today.

"A number of initiatives regarding the supply of Russian crude and refined oil are being discussed both at the intergovernmental and business-to-business levels," the envoy told a media briefing at the Russian Embassy in Dhaka.

He said samples of Russian crude oil will be made available to Bangladeshi experts to find out whether that can be refined here.

Also, primary discussions have started to explore the mechanisms to replace dollars in bilateral trade between the two countries, he said, adding: "I have recently met the Governor of Bangladesh Bank to discuss the issue."

With major logistical obstacles being removed, the negotiations are ongoing between Moscow and Dhaka to resume wheat purchase on a G-to-G basis through the direct procurement method.

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Mutual efforts of the two countries made it possible to increase the bilateral turnover manifold. In 2021, it reached an all-time high of almost USD 3 billion, he mentioned.

About the impact of the Ukraine war on bilateral trade he said, the Russian-Bangladeshi business relations are going through another challenging time with the Western sanctions, but Russian and Bangladeshi companies are getting accustomed to the new reality.

Some of them are using alternative transportation routes to continue mutually beneficial trade. A large amount of items have been delivered by air, he said.

On August 1, a Russian cargo ship reached the port of Mongla for the first time since the beginning of the special military operation, thus marking the restoration of trade through waterways, he mentioned.

"As a result, even in the first quarter of 2022, the turnover between our two countries amounted to a solid volume of USD 650 million, which is only slightly less than during the same period of 2021."

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In spite of the widespread delusion that all Russian banks came under sanctions, there are only 14 financial institutions that cannot provide services to the Bangladeshi partners due to the economic restrictions.

The bilateral trade operations are being carried out successfully through other Russian banks not affected by the Western restrictions, Alexander Mantytskiy said, adding that the Central Bank of the Russian Federation and the Bangladesh Bank remain in close contact discussing the ways to open correspondent accounts.

Regarding the energy sector cooperation, he said the construction of the Rooppur Nuclear Power Plant is being carried out without hindrance and as per schedule.

Only on August 19, Gazprom International Investments BV has launched drilling of a new well in the gas fields of Bhola island. Exploration of two more wells is expected to begin this year.

He assured that the Russian side stands ready to supply potash fertilisers according to the previously signed contract, as the American sanctions no longer cover non-organic fertilizers and other essential food related goods.

"Besides, there is a growing interest in Russia to procure Bangladeshi medicine and agricultural products," Alexander Mantytskiy said.