Exports through alternative routes have increased as Bangladeshi garment factories continue to supply goods to Russian retailers and brands
Shipments of goods, especially ready-made garments, have almost stopped since the beginning of the war with neighboring Ukraine. At that time, many Russian-bound ships had to wait for the ‘green signal’ at Chattogram port. But it has been possible to continue shipments via alternative routes i.e., Poland and Hamburg of Germany.
However, exports through alternative routes have not stopped as the country’s garment factories continue to supply goods to Russian retailers and brands. According to the Export Promotion Bureau (EPB) data, during the July-September period of the current fiscal year, the garments export to Russia increased by 45.65 percent to $42.3 million.
It is also known that among these products, the shipment of oven garments has increased by 48 percent to $13.86 million and knitwear has increased by 44.53 percent to $28.44 million.
Shahidullah Azim, Vice President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) told the media, “Many people are transporting goods to Russia through alternative routes, so exports are increasing in that country. Exports generally do not increase in a war-torn country.”
In addition to direct trade by sea, garment exporters faced challenges in getting money as European countries ban major Russian banks from using SWIFT, the digital financial transaction system. However, the country’s exporters are accepting payment in Chinese currency Yuan. In some cases, Russian importers are paying in dollars from third countries, including Turkey, Germany and other neighbors.
Almost all clothing retailers and brands in the West have moved their business from Russia to protest the war. However, Businessmen in that country have revived their business as Western-made clothing retailers and brands have left Russia and the Russian economy has not been badly affected by the war.
Russia is one of the most promising non-traditional markets for Bangladesh however, with negative growth since the war started. Local exporters are also being encouraged to export products to Russia. Bangladesh Bank has ordered to accept payment in Yuan which will facilitate payment for imports from China.
