17.04.2023, 15:20
Bangladesh will settle with Russia in yuan for a loan for the construction of the Ruppur NPP
Source: OREANDA-NEWS
OREANDA-NEWS Bangladesh and Russia have agreed to abandon the dollar and switch to using yuan to pay for a Russian loan of almost $12 billion provided to Dhaka for the construction of the Ruppur nuclear power plant. This was reported on Monday by the Business Standard newspaper with reference to the Ministry of Finance of Bangladesh.
According to the new agreement signed last week, Bangladesh will carry out payment settlements with Russia in yuan through any Chinese bank, and Russian beneficiaries will receive payments using the Chinese cross-border interbank system (CIPS), which is an alternative to SWIFT for payments in yuan, the newspaper writes.
According to Business Standard, Bangladesh will pay Russia an amount equivalent to $318 thousand in Chinese currency, which is the current debt of Dhaka on a Russian loan. It arose earlier as a result of the suspension of settlements due to US anti-Russian sanctions.
The Central Bank of Bangladesh opened a window for yuan transactions in September 2022, allowing local banks to open yuan accounts in their branches abroad to settle cross-border transactions in Chinese currency. Bangladeshi exporters were also allowed to keep yuan in their export quota for payments in Chinese currency.
The construction of the Ruppur NPP in Bangladesh is being carried out with the participation of the Rosatom State Corporation. 90% of the construction project is financed by a Russian loan with a maturity of 28 years.
The construction of the Ruppur NPP began in 2021. The NPP is located on the eastern bank of the Padma River, 160 km from the capital of Bangladesh. The station is being designed and built according to the Russian "3+" generation project. The design and construction of the facility is carried out by Rosatom's engineering division. The plant will consist of two power units with VVER-1200 type reactors, the life cycle of which is 60 years with the possibility of extending the operation period for another 20 years. Currently, the construction of the first and second power units is underway.
According to the new agreement signed last week, Bangladesh will carry out payment settlements with Russia in yuan through any Chinese bank, and Russian beneficiaries will receive payments using the Chinese cross-border interbank system (CIPS), which is an alternative to SWIFT for payments in yuan, the newspaper writes.
According to Business Standard, Bangladesh will pay Russia an amount equivalent to $318 thousand in Chinese currency, which is the current debt of Dhaka on a Russian loan. It arose earlier as a result of the suspension of settlements due to US anti-Russian sanctions.
The Central Bank of Bangladesh opened a window for yuan transactions in September 2022, allowing local banks to open yuan accounts in their branches abroad to settle cross-border transactions in Chinese currency. Bangladeshi exporters were also allowed to keep yuan in their export quota for payments in Chinese currency.
The construction of the Ruppur NPP in Bangladesh is being carried out with the participation of the Rosatom State Corporation. 90% of the construction project is financed by a Russian loan with a maturity of 28 years.
The construction of the Ruppur NPP began in 2021. The NPP is located on the eastern bank of the Padma River, 160 km from the capital of Bangladesh. The station is being designed and built according to the Russian "3+" generation project. The design and construction of the facility is carried out by Rosatom's engineering division. The plant will consist of two power units with VVER-1200 type reactors, the life cycle of which is 60 years with the possibility of extending the operation period for another 20 years. Currently, the construction of the first and second power units is underway.
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