Exporters report lost business and delayed payments, showing how transaction difficulties can constrain an otherwise promising apparel market.
Bangladesh’s merchandise exports to Russia declined from $665.31 million in FY2020–21 to $257.26 million in FY2025–26, according to Export Promotion Bureau figures reported by Bangladesh Textile Journal. The reduction amounts to approximately 61.3%, or $408.05 million. Garments account for more than 95% of exports to the destination, the publication reports.
Payment difficulties discourage exporters
Exporters interviewed for the report identified restrictions affecting Russian banks’ access to international payment channels as a major obstacle. Young4ever Textiles Managing Director Rajiv Chowdhury said he stopped supplying Russia after encountering payment difficulties, despite previously exporting more than $1 million annually to the market.
BKMEA President Mohammad Hatem claimed Russian buyers owed Bangladeshi garment exporters more than $1 billion. The report provides no supporting reconciliation or banking data, so this remains an attributed industry estimate.
Apparel data confirm continued weakness
BGMEA’s EPB-based figures show garment exports to Russia reached $19.45 million during July–August FY2026–27, down 33.95% from $29.45 million a year earlier.
Woven garment shipments declined 27.99% to $8.59 million, while knitwear fell 38.01% to $10.86 million. These figures cover apparel specifically and a two-month period, distinct from the annual merchandise totals above.
The Russian decline also contrasts with Bangladesh’s wider garment performance: total apparel exports increased 5.12% to $7.496 billion during July–August. Exports to non-traditional markets collectively grew 6.48% to $1.223 billion, demonstrating that weakness in Russia did not extend uniformly across emerging destinations.
Shipping adds commercial friction
Bangladesh Textile Journal reports that indirect shipping routes through third countries have increased costs and risks. Exporters also described difficulties with alternative settlement arrangements involving third-country companies and currencies. These accounts indicate additional transaction complexity rather than a dependable solution to payment constraints.
Looking ahead, recovery will depend on workable payment channels and reliable logistics alongside buyer demand. For manufacturers assessing market diversification, the experience highlights the importance of evaluating payment collection and delivery feasibility together with potential sales.
