Russia offers to sell fertilizer to Bangladesh at $10 per ton discount, concerns over US approval

❐ Staff Reporter

Russia has offered to supply urea fertilizer at a price 10 US dollars per metric ton lower than the current international market price to ensure Bangladesh’s food security and further expand bilateral trade. However, whether the proposal is feasible and whether it will get permission from the United States remains a question.

This information was given in a press release sent by the Ministry of Commerce on Tuesday, July 28. The release said that a delegation led by the Acting Ambassador of Russia to Bangladesh, Vyacheslav Sentyuri,n paid a courtesy call on Commerce, Industry, Textiles and Jute Minister Khandaker Abdul Muktadir at the Secretariat.

The meeting discussed in detail various issues related to food security, agricultural cooperation, urea fertilizer supply, and government-to-government (G2G) based trade expansion between the two countries.

However, according to international political analysts, Bangladesh’s purchase of fertilizer from Russia depends on the will of the United States. Bangladesh has an agreement with the United States in such a way that Bangladesh must seek permission from the United States to purchase anything from any other country, especially Russia.

In light of the NDA (Non-Disclosure Agreement) signed with the United States with the consent of like-minded political parti,es including Dr. Yunus’ interim government and Tarique Rahman’s BNP government and their ally Jamaat-e-Islami, analysts believe that it is now difficult for Bangladesh to conclude any international agreements or purchases on its own.

According to the terms of the agreement, Bangladesh will not be able to import or enter into agreements with any country that goes against the interests of the United States without the permission of the United States. The agreement can only be concluded if the United States gives its permission after review. If the United States does not give its permission, Bangladesh will not be able to import anything from other countries.

Therefore, no matter how cheaply Russia offers to export fertilizer to Bangladesh, its implementation depends on the approval of the United States. Bangladesh has had to import wheat from the United States at a much higher price than it could have purchased from several countries, including Russia and Ukraine. The same situation may be seen in the case of Russia’s proposal. If necessary, the United States will want to sell fertilizer to Bangladesh at a higher price, but will still not allow it to buy from Russia, observers of international politics believe.

A press release from the Ministry of Commerce mentioned that Russia has expressed interest in supplying about 280,000 tons of urea fertilizer to Bangladesh Chemical Industries Corporation (BCIC) through JSC FEC Prodintorg under the G2G system.

It has been proposed to supply fertilizer at a price of US$10 per ton lower than that of the countries from which Bangladesh currently imports urea. If this initiative is implemented, it is hoped that besides ensuring uninterrupted fertilizer supply, import costs will also be reduced, the Ministry of Commerce said.

Apart from this, discussions were also held on further strengthening cooperation in the supply of essential commodities under the existing Memorandum of Understanding (MoU) between the Trading Corporation of Bangladesh (TCB) and Russia’s JSC FEC Prodintorg.

The Russian representatives expressed interest in exporting various food products including sunflower oil, yellow peas, chickpeas, red lentils and green lentils to Bangladesh. They also assurof continued cooperation to ensure Bangladesh’s food security and maintain market stability.

Commerce Minister Khandaker Abdul Muktadir welcomed Russia’s interest in expanding trade and said that trade, investment, and economic cooperation between the two countries will be further expanded, emphasizing mutual interests and benefits.

At the end of the meeting, Bangladesh and Russia agreed to continue regular communication to increase bilateral trade, expand investment, and further strengthen economic partnership.