Bangladesh’s apparel exporters are losing ground in the Russian market as Western sanctions over the Ukraine war continue to disrupt payments, shipping routes and business transactions.
Russia was once a rapidly expanding destination for Bangladeshi garments, particularly sweaters and knitwear. However, Bangladesh’s exports to Russia have fallen sharply, from $665.31 million in FY2020-21 to $257.26 million in FY2025-26, according to Export Promotion Bureau data.
Garments account for more than 95 per cent of Bangladesh’s exports to Russia. Exporters say restrictions on Russian banks’ access to the SWIFT international payment system have made it increasingly difficult to receive payments from buyers.
Shipping has also become more complicated, with exporters relying on indirect routes through third countries, increasing costs and risks.
Some exporters have attempted to settle transactions through third-country companies and currencies such as the Chinese yuan or Turkish lira, but they say such arrangements carry additional sanctions and payment risks.
Rajiv Chowdhury, managing director of Young4ever Textiles, said he stopped exporting to Russia after facing difficulties receiving payments, despite previously shipping more than $1 million worth of garments annually to the market.
BKMEA President Mohammad Hatem said Bangladeshi garment exporters are owed more than $1 billion by Russian buyers because of difficulties in processing payments following restrictions on Russian financial institutions.
Despite the challenges, exporters believe Russia remains a promising market for Bangladeshi apparel because of continued demand for competitively priced “Made in Bangladesh” products.
