Bangladesh and Russia have agreed to use yuan to settle payment for a nuclear plant Moscow is building in the South Asian country, a Bangladesh government official said on April 17.
Bangladesh is constructing the first of two nuclear power plants in collaboration with Russia’s state-owned atomic company Rosatom in a $12.65 billion project, 90% of which is financed through a Russian loan repayable within 28 years, with a 10-year grace period.
“Russia wanted us to make payment in rouble but that’s not possible for us. So we have agreed to pay in Chinese yuan,” Uttam Kumar Karmaker, a senior official in the Bangladesh Economic Relations Division, told Reuters.
The project will help curb frequent power cuts which analysts expect to worsen this year as Bangladesh’s ability to import fuels has taken a hit following a rapid decline in the value of its currency and foreign exchange reserves.