Bangladesh's caretaker government has officially requested the United States for a temporary sanctions waiver to allow the import of crude oil from Russia, amid a severe energy and currency crisis.

Request for sanctions waiver

Bangladesh is petitioning Washington for the possibility to purchase Russian oil despite existing international restrictions.

Economic crisis

The decision is driven by dwindling foreign exchange reserves and fuel shortages that are paralyzing the local economy.

Role of the sole refinery

The state-owned Eastern Refinery Limited (ERL) remains the only facility capable of processing crude, but it lacks supplies.

US diplomatic dilemma

Washington must balance maintaining pressure on Russia with supporting the stability of the new government in Dhaka.

Bangladesh has officially requested the United States for a temporary sanctions waiver to allow the country to import crude oil from Russia. The news of the request from the government in Dhaka was reported by media on March 12, 2026. This decision is motivated by a deep energy crisis and a painful shortage of foreign exchange reserves, which prevents the purchase of raw materials on standard market terms. The only entity in the country capable of processing Russian crude is the state-owned Eastern Refinery Limited (ERL).

Currently, the country is governed by a caretaker government that took power after the mass social protests of 2024. The administration is headed by Nobel Peace Prize laureate, Muhammad Yunus, who serves as Chief Advisor. According to media reports, the formal approach to the American side is the responsibility of energy advisor Muhammad Fouzul Kabir Khan. The Yunus administration is trying to stabilize the internal situation after the ousting of the long-term government of Prime Minister Sheikh Hasina, which involves the need to ensure continuity of electricity and fuel supplies. Bangladesh underwent a rapid political transformation in 2024 after the so-called July Revolution, which ended the 15-year rule of Sheikh Hasina. The country is the second-largest economy in South Asia, but its stability depends on energy imports and the health of the textile sector. Since the change of power, the caretaker government has faced the challenge of rebuilding foreign exchange reserves and reforming state institutions.

The Bangladeshi authorities argue that obtaining a waiver is essential for the economic survival of the state in the face of global price volatility. The United States, which imposed restrictions on the Russian energy sector after the invasion of Ukraine, has not yet issued an official response to Dhaka's request. This situation presents Washington with a dilemma between maintaining the integrity of the sanctions system and supporting the stability of a democratic caretaker government in a strategic region of Asia. The lack of a positive decision could deepen energy shortages, which directly impacts the civilian population and local industry.

Crisis and change of power in Bangladesh: August 5, 2024 — Sheikh Hasina resigns; August 8, 2024 — Government sworn in; March 12, 2026 — Request for sanctions waiver

Mentioned People

  • Muhammad Yunus — Bangladeshi economist and social entrepreneur, who led Bangladesh's transition to democratic rule after the July 2024 uprising as Chief Advisor of the caretaker government.
  • Sheikh Hasina — Former Prime Minister of Bangladesh, removed from power following mass protests in 2024.