World’s largest nation geographically (spanning 11 time zones), Russia has a big apparel market (estimated at US $ 43.2 billion in 2016), which is showing signs of picking up following apparent rebounding of the Russian economy. However, Bangladesh as the world’s second biggest apparel exporter, according to experts, is yet to make substantial mark in Russia.
Nevertheless, things might turn for the better soon after Bangladesh and Russia have reportedly decided to sign a Memorandum of Understanding (MoU) to remove all trade barriers between the two countries.
“Bangladesh has been maintaining a good relation with Russia in terms of trade and commerce. But the bilateral trade and commerce did not increase as per expectations due to some complexities,” reportedly stated Bangladesh Commerce Minister Tipu Munshi after his meeting with Russian Ambassador to Bangladesh Alexander Ignatov recently while underlining that Dhaka and Moscow are expected to sign a MoU next month in an effort to remove trade barriers and increase bilateral trade.
It may be mentioned here that currently, there are no banking transactions between Bangladesh and Russia, and trade is done through Telegraphic Transfer (TT), which as per many garment makers, is a major hindrance towards facilitating garment business with Russia.
Munshi further underlined that there is huge demand for Bangladeshi apparel items alongside sea foods, potato and medicine in the Russian markets while adding that signing of the MoU will allow banking transactions between the two countries to reduce difficulties related to trade and commerce thereby giving a fillip to trade with Russia.
