Exporters fear a war over Ukraine to cause huge loss of trade

Bangladesh-based exporters are concerned over the ongoing Ukraine unrest as they believe Bangladesh might be a sufferer if the conflict turns into a war.

They said the feared war could take a toll on the country's export since Ukraine's neighbouring European countries were its crucial export destinations. Besides, it could lose trade worth millions of dollars with Russia.

Talking to The Business Standard, Bangladesh Garment Manufacturers and Exporters Association Vice-President Shahidullah Azim said, "If the war begins, we will suffer in many ways."

He said a good volume of the country's exports went to those markets indirectly, apart from the direct export.

"Besides, the war will have a bad impact on global shipping, which will also hamper our businesses."

Echoing Azim, Md Ashikur Rahman Tuhin, managing director of another leading exporter TAD Group, said the Europeans were very conscious and they might stop buying apparel items during the feared war.

In that case, Bangladesh apparel makers would lose businesses, he told TBS. 

According to the Export Promotion Bureau (EPB), Bangladesh exported worth $17.46 billion to the European Union in fiscal year 2020-2021, while apparel shipments were worth $16 billion.

Besides, it exported $665.32 million in the fiscal to Russia.

Meanwhile, another business leader, seeking anonymity, told TBS that the feared Ukraine war might also hamper Russia-supported ongoing development projects in Bangladesh. 

Currently, Russia is constructing Bangladesh's first nuclear power plant – Rooppur Nuclear Power Plant – and is involved in several other mega projects.