More than four years after the outbreak of the Russia-Ukraine war, Bangladesh's garment exports to Russia have shrunk sharply. Data from the Export Promotion Bureau (EPB) show that Bangladesh's exports to Russia amounted to $665.31 million in FY2020-21 and still reached $638.3 million in FY2021-22, before declining year by year to $257.26 million in FY2025-26. Garments account for over 95% of Bangladesh's exports to Russia, and the industry had previously hoped to raise annual garment exports to Russia to $1 billion.

Key Points

  • Bangladesh's exports to Russia fell from $665.31 million in FY2020-21 to $257.26 million in FY2025-26.
  • Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Russian buyers owe local exporters more than $1 billion.
  • Some small and medium-sized enterprises are owed $3 million to $4 million; one exporter negotiated for three years to recover $100,000, which was ultimately paid through a third-country company.

Bangladesh's direct garment trade channel with Russia originated from Turkey's imposition of a 17.5% safeguard tariff in 2011. Previously, Bangladeshi manufacturers shipped large volumes of basic garments to Turkey, which then re-exported them to Russia under its own labels; after the tariff took effect, Bangladeshi exporters shifted to direct shipments to Russia, and trade with Russia expanded rapidly.

After the war broke out on February 24, 2022, several Russian banks and financial institutions were excluded from the SWIFT international interbank payment system, and direct shipments to Russia also became unfeasible. Exporters were forced to reroute through countries such as Poland, Finland, Belarus, and Germany, making transportation more complex and costly.

Payment problems have led many manufacturers to significantly scale back or even exit the Russian business. Rajiv Chowdhury, managing director of Young4ever Textiles, said that before the war his company exported more than $1 million worth of garments to Russia, but it has now stopped exports there; it took him three years to recover a $100,000 payment, which the buyer eventually settled through a third-country company. He noted that because "Made in Bangladesh" is highly price-competitive, demand in the Russian market remains strong, but shipping through third countries and receiving payment in third-country currencies carries significant risks, as such operations may invite Western sanctions or blacklisting—for example, settling in Turkish lira or Chinese yuan could attract the attention of Western countries.

Mohammad Hatem also mentioned that some exporters shipping goods to Russia through Polish buyer LPP are likewise facing difficulties in collecting payment.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said multiple rounds of Western sanctions on Russia have led to a decline in exports to Russia, and local manufacturers are shifting their focus to new markets such as Japan, Turkey, India, and South Korea. However, he judged that Russia remains a sizable market, and once the war ends, Bangladesh is expected to rebuild it as a major export destination.

For the used-clothing and textile-apparel trade industry, this case shows how disrupted payment clearing and transit routes under geopolitical conflict can reshape garment export flows: Russian demand spillover may shift to other supply sources or second-hand channels, while Bangladeshi manufacturers' shift toward markets such as Japan and South Korea will also change the competitive landscape of regional garment supply chains.

Source: Bangladeshi apparel exporters are losing Russian buyers · Originally published on 2026-10-06