Since attaining independence in the past century, Bangladesh’s ties with other nations have had ups and downs. But when conducting its foreign policy, it has always sought to follow a medium path or a neutral concept. Bangladesh’s foreign policy is non-aligned, non-interventionist, non-aggressive, non-imperialist, and non-expansionist as well because it upholds territorial integrity. Its foreign policy revolves around friendship with everyone and animosity toward no one. In order to maintain several bilateral and multilateral partnerships in cooperation with them, Dhaka has relations and affiliations with more than 100 nations, territories, regional and global blocs like the SAARC, the United Nations (UN), and Commonwealth.
Bangladesh, in other terms, does not intend to sway in favor of a particular major power. It maintains its external relations with the world community by pursuing a middle of the road foreign policy that heavily relies on multinational diplomacy. Bangladesh wants to have more positive relations with its neighbors in the region Bangladesh has advanced significantly over time on all socioeconomic fronts, and it is on track to achieve middle-income status by 2026. But Dhaka is yet to make serious overtures to expand ties with Russian linked Commonwealth of Independent States (CIS) bloc, despite its willingness.
No bilateral free trade agreement has yet been signed by Bangladesh (BFTA). Apart from the United States (US) and the European Union, it is thought that a free trade agreement with Russia and the CIS has the potential to open the nation’s third-largest export market (EU). Ten post-Soviet states in Eurasia make up the CIS, a geopolitical union. Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and Uzbekistan are the member states. These five nations—Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia—have united to form the ambitious Eurasian Economic Union (EAEU).
The union is seen as an integrated single market with 183 million inhabitants and $424.83 billion in annual imports. The union’s eventual membership of other CIS nations will certainly result in a larger market. Russia, which ranks ninth in terms of population and has the fifth-largest economy in the world by purchasing power parity, is a key market for the rest of the Commonwealth of Independent States.
Some of the world’s finest cottons are a game changer for the CIS countries, a key ingredient for the RMG sector of Bangladesh, the main driver of its economic growth. These nations have the special ability to improve cotton production, and they also have a special system that is conducive to higher cotton production.
The ‘special military operation’ of Russia in Ukraine created one of the most significant diplomatic challenges in recent memory of Bangladesh. Bangladesh’s geopolitical and economic constraints have forced Dhaka to manage its strategic connections with Russia and China on the one hand, and the United States and European Union on the other, in this new era of great power rivalries.
Bangladesh has no significant interests in Eastern Europe, unlike its neighbors in South Asia. However, the time has come when Dhaka should put more effort for a strong trade relation with East Europe and CIS countries.
Moreover, Washington-Dhaka relations had a challenging year in 2021. With Washington’s invitation to take part in the Leaders’ Summit on Climate Change, it got off to a promising start. However, by the year’s end, Washington had imposed sanctions on Bangladesh’s Rapid Action Battalion (RAB) and a number of its current and former officers for a pattern of long-standing human rights abuses, including extrajudicial killings. Bangladesh was not invited to the virtual Summit for Democracy by the Biden administration the same month. Such moves have ramifications for Dhaka with looming elections, as Washington intends to send signals to Dhaka to make careful calculations when it comes to cultivate ties with Eastern Europe and CIS countries, else risk Bangladeshi markets in the West.
In recent years, bilateral ties between Dhaka and Moscow have been strengthened as the two countries have signed numerous significant agreements. Moscow and Dhaka had struck a $1 billion arms deal, the largest military deal for Bangladesh, to buy Russian military equipment in 2013. This was done to counterbalance Bangladesh’s military dependence on China. Additionally, Moscow is helping Dhaka develop the country’s first nuclear power plant of its kind, a 2400 MW facility at Rooppur that will strengthen Bangladesh’s electricity and energy industries. Moscow will contribute 90% of the project’s estimated $12.85 billion overall cost. Russia is a partner in industries like readymade garments, agriculture, fertilizer, military gear, etc. and is Bangladesh’s fourth-largest source of development assistance. In this way, Bangladesh should exert its trade related diplomatic activities in East European and Central Asian countries by promoting emerging sectors like infrastructure and dredging for implementing Delta Plan 2100, shipbuilding, offshore and onshore energy, marine fisheries and biotech resources extraction in the Bay of Bengal.
Despite the fact that there is now no official prohibition on banking activities, there are two significant issues. One has to do with the currency of the transaction. For trade transactions, the majority of exporters, importers, and Bangladeshi banks prefer using the US dollar over the Russian ruble. The US and EU have once more imposed sanctions on some significant Russian banks. Because of this, Bangladeshi banks are wary of doing business with certain Russian banks. In this regard, Bangladesh should pursue cooperative actions with Russia and the CIS countries for the harmonization of bilateral institutional cooperation in the relevant domains, such as customs agencies and quality and standards organizations, effective banking transaction system as well as regulatory measures to address the hindrances.
In order to maintain room for its strategic autonomy to suit its strategic needs, Bangladesh exhibits a reflexive desire to remain neutral and non-committal in this era of great power conflicts. By picking its own “side” to further its national interests amidst cyclical bursts of Cold War hostility between and among large powers, Dhaka should rely upon the most frequently quoted axiom of international politics: there are no permanent friends or foes; there are only permanent interests.