Bangladesh to pay for Russian power plant in Chinese currency
Bangladesh to Use Yuan to Pay Installments for Russian Nuclear Power Plant
The Economic Relations Unit of the Ministry of Finance of Bangladesh has decided to use yuan to pay the installments of the Russian nuclear power plant, according to a report by the Washington Post. The decision was made to eliminate the payment problem between Russia and Bangladesh, which has been ongoing for more than a year due to sanctions against Russia and being prevented from making SWIFT transactions. Bangladesh Central Bank spokesperson Mezbaul Haque stated that paying in yuan is an option since it is also a part of their foreign exchange reserve.
Although the decision has been made, the payment has yet to be completed due to unresolved details. Nevertheless, the decision will make it possible to pay off the $12 billion loan that Bangladesh received from Russia for the construction of a nuclear power plant. The payment will be made through the Cross-Border Interbank Payment System (CIPS) system developed by China to break the dominance of the dollar in international trade.
Some experts suggest that Bangladesh should not delay the project even if it means bypassing the dollar. Ahsan Mansour, Director of the Bangladesh Policy Research Institute, said that Bangladesh needs to maintain its relationship with both sides, and that it is not like China and the USA.
Rosatom, the main contractor for the nuclear power plant to be built in Rooppur, Bangladesh, did not comment on the issue. Meanwhile, Chinese news outlet SINA reported that Bangladeshi officials believe paying in yuan is the most convenient option.
