Russia has waived a $160M penalty and extended Bangladesh’s Rooppur nuclear loan deadline, easing financial pressure amid sanctions and project delays.
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| Russia has dropped a $160M penalty and postponed repayment terms for Bangladesh’s Rooppur nuclear project loan, reflecting stronger bilateral cooperation. Image: CH |
DHAKA, Bangladesh — April 17, 2025:
In a significant diplomatic and financial development, Russia has waived a $160 million penalty and extended the loan repayment timeline for Bangladesh’s Rooppur Nuclear Power Plant—the country's largest infrastructure project. The adjustment comes amid delays caused by U.S. sanctions and global economic strain.
Originally scheduled to begin in March 2027, the repayment of the Russian-funded $11.38 billion loan will now start on September 15, 2028, following a request by the interim Bangladeshi government for a two-year deferral. Although Russia granted only one and a half years, the agreement marks a crucial financial reprieve for Bangladesh, which has faced challenges in making payments due to sanctions that restrict dollar-based transactions.
The $160 million fine had accumulated over unpaid installments from a $500 million feasibility study loan, with conditions set in the original protocol mandating a 4.5% penalty for delays exceeding one month. However, the revised agreement from Moscow removes this clause entirely, with Bangladeshi officials emphasizing that external constraints—not domestic mismanagement—were responsible for the repayment delays.
Dr. Mohammad Mizanur Rahman, who heads the European Wing of Bangladesh’s Economic Relations Division (ERD), confirmed the developments, stating that funds are currently being held in escrow accounts, while discussions continue on alternative settlement methods outside the U.S. dollar framework.
The Rooppur Nuclear Power Plant, under construction since 2017 in Ishwardi Upazila of Pabna district, carries a total cost of $12.65 billion, 90% of which is being financed by Russia’s Rosatom State Atomic Energy Corporation. To date, approximately $7.7 billion has been disbursed. The remaining $3.68 billion is expected to be delivered by December 2026.
Earlier this year, Rosatom Director General Alexei Likhachev met with Chief Advisor Muhammad Yunus in Dhaka, where both parties agreed on the need to revise the original loan agreement. The resulting protocol not only forgives the penalty but also accommodates a new timeline for repayment, aligning with ongoing construction progress.
As the nuclear facility approaches its scheduled completion in December 2025, the financial leniency from Russia offers Bangladesh a critical buffer against mounting external liabilities, while reinforcing the strategic energy partnership between the two nations.