The Russian financing for the Rooppur Nuclear Power Plant has been successfully extended by Bangladesh till 2027. about July 14, the crucial deal, officially known as “Protocol-2,” was signed, resolving major setbacks brought about by the Covid-19 epidemic and Western sanctions on Russian banks. Salehuddin Ahmed, a finance adviser, saw the revised terms, which also delay the start of principal repayment by 18 months.
Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), confirmed this development to the media stating, “A new protocol has been signed. We now expect the project to be completed on schedule.”
The original intergovernmental agreement between Bangladesh and Russia outlined a project implementation period from 2016 to December 2025, with loan repayment set to begin in March 2027 after a 10-year grace period. Under the revised arrangement, repayments will now start in September 2028.
The Rooppur project, which is estimated to cost $12.65 billion, sees Russia providing 90% or $11.38 billion through state credit, while Bangladesh covers the remaining 10%. To date, $7.7 billion has been disbursed, although the inflows have slowed in recent years.
ERD officials clarified that the US-led sanctions imposed on Russian banks following the Ukraine war in 2022 posed a significant challenge. These sanctions prevented Rosatom, the Russian state nuclear agency, from accessing funds held in its Sonali Bank account in Dhaka.
As a result, Bangladesh was unable to make payments on both the $500 million feasibility loan and the main project loan, despite having met its domestic obligations. This situation led to a prolonged deadlock in renegotiating the loan terms.
Bangladesh has successfully extended the disbursement period of the Russian loan for the Rooppur Nuclear Power Plant until 2027.
The important agreement, formalized as “Protocol-2,” was signed on July 14, addressing significant delays caused by the Covid-19 pandemic and Western sanctions on Russian banks.
The updated terms, witnessed by Finance Adviser Salehuddin Ahmed, also postpone the commencement of principal repayment by 18 months.
Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), confirmed this development to the media, stating, “A new protocol has been signed. We now expect the project to be completed on schedule.”
The original intergovernmental agreement between Bangladesh and Russia outlined a project implementation period from 2016 to December 2025, with loan repayment set to begin in March 2027 after a 10-year grace period. Under the revised arrangement, repayments will now start in September 2028.
The Rooppur project, which is estimated to cost $12.65 billion, sees Russia providing 90% or $11.38 billion through state credit, while Bangladesh covers the remaining 10%. To date, $7.7 billion has been disbursed, although the inflows have slowed in recent years.
ERD officials clarified that the US-led sanctions imposed on Russian banks following the Ukraine war in 2022 posed a significant challenge. These sanctions prevented Rosatom, the Russian state nuclear agency, from accessing funds held in its Sonali Bank account in Dhaka.
As a result, Bangladesh was unable to make payments on both the $500 million feasibility loan and the main project loan, despite having met its domestic obligations. This situation led to a prolonged deadlock in renegotiating the loan terms.
