The Bangladesh government is reportedly preparing to repay Russia its outstanding debt for the Rooppur nuclear power plants,following the good news of receiving a temporary waiver from the US office of Foreign Assets Control (OFAC).
Officials said earlier this month the OFAC approved the disbursement of funds to Dhaka under certain conditions,including completing the finance head by December.
The finance ministry has reportedly started the process. The Economic Resources Department (ERD) has written to Dhaka and asked the Bangladesh government to inform it about how the money can be paid and it has been reported that Bangladesh bank is working on the technical process.
An ERD official insider revealed that the post will be sent to OFAC for the final translation as soon as the Russian side issues instructions. ERD Secretary Md Shahriar Kader Siddiky confirmed the development but he was denied to reveal anything about it for now.
The OFAC has granted this waiver to Bangladesh following a formal request to the US Treasury in April by the interim government of Bangladesh seeking permission to make the payment. Since the invasion of Ukraine in 2022, Bangladesh has been cut off from Russian finance due to economic sanctions imposed on Russia by the United States and other western countries, which are now expected to relesed.
Due to sanctions, Bangladesh bank was forced to deposit a third-party account,also known as escrow account,for the loan and interest collection of the Russian-funded Rangpur Nuclear power plant,which holds temporary transaction assets.
A senior Bangladesh Bank official ,who did not wish to be named, said that after learning about the payments from Russia and the intermediary relationship,they will again seek a no-objection certificate from the OFAC.
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