Bangladesh’s apparel exports to Russia have declined sharply as Western sanctions linked to the Russia-Ukraine war disrupt payments and shipping routes. Once a fast-growing market for Bangladeshi garment manufacturers, Russia has become increasingly difficult to serve.

According to Export Promotion Bureau data, Bangladesh’s total exports to Russia fell from $638.30 million in fiscal year 2021–22 to $257.26 million in fiscal year 2025–26. Ready-made garments account for more than 95% of Bangladesh’s exports to the Russian market.

One of the biggest challenges is receiving payments. Several Russian banks have lost access to the SWIFT international payment system, making transactions more complicated for Bangladeshi exporters.

Shipping has also become more expensive. Exporters increasingly rely on alternative routes through third countries, adding costs and delays to deliveries.

Rajiv Chowdhury, managing director of Young4ever Textiles, said payment difficulties forced his company to stop exporting to Russia, despite previously shipping more than $1 million worth of garments to the market. He also described significant delays in receiving payments from Russian buyers.

Industry leaders have raised further concerns about outstanding export payments. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladeshi exporters are owed more than $1 billion by Russian buyers.

Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has encouraged manufacturers to explore alternative markets. Japan, Turkey, India and South Korea offer potential opportunities for Bangladesh’s garment industry.

Despite the challenges, industry representatives believe Russia could become an important export destination again if the war ends and payment channels improve. For now, exporters are focusing on market diversification to reduce risks and protect business growth.