US grants Bangladesh fresh 60-day waiver for Russian fuel imports

Highlights-

• US grants Bangladesh a 60-day waiver (11 Apr–9 Jun) for Russian fuel imports.
• Unlike the previous waiver, this one allows fresh imports.
• Bangladesh plans to import up to 10 lakh tonnes of diesel, starting with an initial 1 lakh tonnes.
• The waiver offers short-term relief and energy security, while Bangladesh explores alternative fuel sources beyond the Middle East.

The United States has granted Bangladesh a fresh 60-day sanctions waiver to import Russian-origin finished petroleum products, offering temporary relief to the country's strained fuel supply system amid ongoing global energy disruptions.

According to several officials at the Energy and Mineral Resources Division, the waiver – effective from 11 April – will remain valid until 9 June.

The US Department of State formally communicated the decision to Bangladesh's Ministry of Foreign Affairs on 11 April, officials confirmed to The Business Standard.

Earlier on 12 March, the US Department of the Treasury allowed a transaction waiver involving Russian crude oil and petroleum products for 30 days that ended on 11 April.

That licence applied only to cargoes loaded onto vessels on or before 12 March and primarily facilitated the completion of shipments already in transit.

Bangladesh argues that the sanction waiver did not bring any benefit for Bangladesh as there were no Russian oil-laden ships at sea or en route to Bangladesh.

Fresh window for new imports

Officials say the 60-day waiver will give Bangladesh a breathing space by enabling the procurement of Russian refined fuel, particularly diesel, at a time when traditional supply chains remain under stress.

"The US granted us a two-month waiver on Russian oil imports. The foreign ministry confirmed the development, but we have yet to receive the official documentation," said an Energy Division official.

The waiver was sought to facilitate the import of at least 10 lakh tonnes of diesel from Russian sources as Bangladesh looks to diversify supply amid rising prices and tightening availability in global markets.

Energy Division officials say the Bangladesh Petroleum Corporation (BPC) is preparing to initiate imports of an initial 1 lakh tonnes of diesel under an ongoing deal involving a US-based company that will supply Russian-origin fuel.

The move comes against the backdrop of persistent fuel supply concerns amid geopolitical tensions in the Middle East, particularly since the outbreak of the war in Iran on 28 February, which disrupted energy shipments and pushed up global oil prices.

Bangladesh, which relies heavily on imported refined petroleum products, has been facing challenges in securing adequate volumes from traditional Middle Eastern suppliers due to price volatility and supply constraints.

Diplomatic engagement 

In a letter sent on 30 March, the Energy Division formally requested a limited-duration sanctions waiver from the US government, citing "sharp increases in global energy prices" and "challenges in procuring fuel from traditional Middle Eastern sources".

The letter noted that Russia had emerged as a viable alternative supplier due to its resource availability and capacity for immediate delivery.

The waiver request followed a series of high-level engagements involving Bangladesh and US officials. On 20 March, the BPC wrote to the Ministry of Foreign Affairs after a virtual meeting held on 18 March.

The meeting brought together representatives from the US Department of the Treasury, the US Department of State, the Bangladesh Embassy in Washington, the US Embassy in Dhaka, and the Energy Division.

In its communication, the Energy Division outlined a proposal seeking a minimum two-month waiver to enable imports of at least 10 lakh tonnes of diesel from Russian sources.

It also emphasised that the BPC is working with an American company to manage the procurement process, aiming to ensure transparency and compliance with international regulations.

"This initiative is viewed as a bridge toward the finalisation of an MoU for energy cooperation with the United States, which will ultimately enhance the role of American companies in Bangladesh's energy management," the Energy Division letter stated.

Meanwhile, Russian Ambassador to Bangladesh Alexander Khozin yesterday called on Energy and Mineral Resource Minister Iqbal Hasan Mahmud Tuku at the latter's parliament office in Dhaka.

Limitation in previous license 

Officials said earlier that US provisions, including General License 134, were insufficient for Bangladesh's needs as the country had no Russian cargo in transit at the time of the 12 March authorisation.

That licence allowed only the sale, delivery, or offloading of Russian oil and petroleum products that had already been loaded before 12 March, effectively excluding new procurement.

It also permitted supporting operational activities such as safe docking, crew safety measures, emergency repairs, bunkering, insurance, and other vessel services for sanctioned tankers.

The newly granted waiver, however, removes these constraints for a limited period, allowing Bangladesh to enter into fresh contracts for Russian fuel.

Balancing sanctions and energy security 

The US sanctions regime against Russia, imposed following the Ukraine war, continues to restrict most transactions involving Russian energy exports.

However, targeted waivers have been granted in specific cases to address energy security concerns of partner countries.

For Bangladesh, the waiver represents a critical short-term solution to stabilise domestic fuel supply and ease pressure on the energy sector.

Energy sector insiders say timely execution of import plans under the waiver will be key to mitigating supply shortages and preventing further volatility in domestic fuel markets.

With the waiver in place, the BPC will move quickly to finalise procurement and logistics arrangements for Russian diesel imports.

Officials say the government will closely monitor market conditions and diplomatic developments to determine future steps once the waiver expires in early June.

They say that, for now, the decision provides a narrow but crucial window for Bangladesh to navigate ongoing global energy uncertainties and maintain stability in its fuel supply chain.