Economy
Ambassador Mantytsky Highlights Resilience in Bangladesh-Russia Ties
The Russian Ambassador to Bangladesh, Alexander Mantytsky, expressed the resilience and strength of Bangladesh-Russia relations, both politically and economically, during a DCAB Talk at the Jatiya Press Club. He highlighted the promising outcomes of 2023 and emphasized the potential for further expansion and diversification of mutual interests between the two countries in 2024. The Ambassador noted Bangladesh’s significance as Russia’s second-largest trade partner in South Asia and detailed the economic cooperation, including trade volume and diversification efforts.
Mantytsky mentioned Russia’s contribution to Bangladesh’s food security, particularly in wheat and fertilizers. He expressed Russia’s readiness to expand the list of export items, including edible oils, peas, chickpeas, and lentils. Energy cooperation, especially in enhancing Bangladesh’s energy security, was highlighted, with ongoing projects by Gazprom and proposals for gas evacuation and exploration of new fields.
The Rooppur Nuclear Power Plant (NPP) project was a significant focus, with milestones like the installation of the passive heat removal system at Unit 2. The Ambassador emphasized Russia’s commitment to the safety and efficiency of the NPP project, contributing to Bangladesh’s economic development and energy security. He addressed concerns about certain quarters attempting to undermine the Rooppur NPP project.
The Ambassador touched upon the global context, including the situation in Ukraine, and emphasized Russia’s advocacy for peaceful development based on sovereign equality and indivisible security. The growing global intolerance towards the West’s arrogant manners and Russia’s efforts to maintain respectful dialogue were highlighted. The goodwill visit of the Russian Pacific Fleet to the port of Chittagong and the participation of Russian sailors in Victory Day celebrations in Bangladesh were also mentioned.
Overall, Mantytsky expressed optimism about the ongoing and future collaboration between Russia and Bangladesh across various sectors.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
