Bangladesh has agreed to pay Russia $300 million in yuan to settle the construction of the nuclear power plant near the capital, Dhaka, according to two officials familiar with the matter.
The two officials, who declined to be identified, said that the payment mechanism was communicated during a meeting that took place last week.
They explained that Russia had initially refused to accept payment in yuan due to fears of possible losses in currency conversion, and insisted on payment in roubles.
The nuclear power project is a key factor for future energy security, as Bangladesh faces frequent power outages and increased demand from businesses and homes.
The $12.65 billion nuclear power plant in the central Pabna district, about 140 kilometers west of Dhaka, is being built with the help of Moscow's state-owned nuclear power company, Rosatom, and funded by a Russian loan.
Both officials said Russia is still pushing for an alternative payment system for trade and business.
Moscow has asked Bangladesh to open a direct financial channel between the central banks of the two countries to facilitate the transfer of funds facing obstacles resulting from the sanctions imposed on Moscow over its war in Ukraine.
It also suggested that Dhaka consider a variety of options, including establishing a currency swap agreement, using the rouble in trade settlements, and enabling the Russian Central Bank's messaging system to facilitate bilateral trade and investment.
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