Dhaka seeks US sanctions waiver to import 6 lakh tonnes of Russian oil

Bangladesh has formally requested the United States to relax sanctions restrictions, seeking permission to import 6,00,000 tonnes of fuel oil from Russia to address persistent domestic energy shortages.

Monir Hossain Chowdhury, Joint Secretary of the Operations Division at the Ministry of Energy and Mineral Resources, confirmed the development during a press briefing on the nation's energy outlook at the ministry on Monday.

Diplomatic outreach to Washington

The request follows precedent set by Washington's earlier decision to grant India a temporary sanctions waiver for Russian crude oil imports. Bangladesh has been pursuing similar flexibility to secure critical diesel supplies amid tightened global markets.

"You are aware that the United States provided India with a sanction waiver for importing oil from Russia," Chowdhury stated. 

"I was present in a government-level meeting with the US State Department the day before Eid. During that discussion, we sought to convince them that Bangladesh should be permitted to import at least two months' worth of diesel, equivalent to 6,00,000 tonnes, from Russia under a similar waiver arrangement."

Following the meeting, US officials requested that Bangladesh submit a formal written request. "They asked us to send a letter, and we dispatched that correspondence most likely the day after Eid," the Joint Secretary confirmed. "We are now awaiting their response. That represents the current status of our diplomatic efforts in this regard."

Supply chain realities: India deliveries fall short of commitments

Beyond the Russia proposal, Bangladesh has been relying on regional partners to bridge supply gaps. An existing agreement with India promised 60,000 tonnes of fuel oil between January and June. However, geopolitical disruptions significantly impacted deliveries.

"Before the escalation of regional tensions, we received only 5,000 tonnes from India under that agreement," Chowdhury explained. "Subsequently, our Minister and Secretary held productive discussions with the Indian High Commissioner. As a result, supplies have now resumed on a regular basis."

To date, Bangladesh has received approximately 22,000 tonnes of diesel from India through multiple shipments: three consignments of 5,000 tonnes each, plus one larger parcel of 7,000 tonnes.

Diversification strategy: Casting a wider net

Recognising the vulnerability of over-reliance on any single supplier, Bangladesh is actively pursuing alternative sources across multiple continents.

"We are expecting to receive two cargoes totalling 60,000 tonnes from Indonesia in the near term," Chowdhury announced. "Beyond that, we are continuously exploring other potential suppliers. Given the current constraints, we are in discussions with counterparts in Singapore, Malaysia, Nigeria, Azerbaijan, Kazakhstan, Angola, Australia and the United States."

He added that some of these engagements have already yielded results. "We have received assurances in certain cases. For instance, we have successfully secured liquefied natural gas (LNG) shipments from both Australia and Angola."

Strait of Hormuz: Navigating geopolitical risk

A separate but related concern involves maritime transit through the strategically critical Strait of Hormuz. Recent reports suggest that five countries, including Bangladesh, India, Pakistan, China and Russia, may be granted limited passage rights through the waterway amid ongoing regional hostilities.

Bangladesh has engaged directly with Iranian diplomatic representatives on this matter. "We held discussions with the Iranian Ambassador and submitted a formal letter requesting facilitation," Chowdhury noted. "Based on that correspondence, we anticipate a positive response."

However, the Joint Secretary tempered expectations with a candid risk assessment. "Despite diplomatic progress, shipping through the Strait remains inherently risky and uncertain given the prevailing security situation. Moreover, vessels not flying the Bangladeshi flag may face heightened scrutiny or operational difficulties."

Business implications and market outlook

The pursuit of Russian fuel oil, if approved, would carry significant implications for Bangladesh's energy sector and broader economy:

Cost Competitiveness: Russian fuel oil has traded at discounted rates relative to benchmark prices since the imposition of Western sanctions. Access to these supplies could help stabilise domestic fuel pricing and reduce the import bill.

Supply Chain Resilience: Diversifying procurement across multiple jurisdictions reduces exposure to regional disruptions, though it introduces complexity in logistics and quality assurance.

Compliance Considerations: Any waiver would likely come with stringent reporting and end-use verification requirements, necessitating robust internal controls within Bangladesh's state-owned fuel distributors.

Market Signalling: A successful US waiver could encourage other sanctioned-energy importing nations to pursue similar arrangements, potentially reshaping regional trade dynamics.

Looking Ahead

While awaiting Washington's response to its sanctions waiver request, Bangladesh continues to prioritise near-term supply security through existing channels. The government's multi-pronged strategy, combining diplomatic engagement, regional cooperation and global sourcing, reflects the challenging reality of energy procurement in an era of geopolitical fragmentation.

"We recognise that these challenges cannot be resolved overnight," Chowdhury concluded. "But through persistent diplomacy, prudent planning and technological innovation, we remain confident in our ability to meet Bangladesh's energy needs while safeguarding our economic interests."

For businesses operating in Bangladesh's transport, manufacturing and power generation sectors, the outcome of these efforts will directly influence operational costs and planning certainty in the months ahead. As global energy markets remain in flux, Dhaka's ability to navigate sanctions, secure diversified supplies, and manage transit risks will be closely watched by investors and regional partners alike.