Russia's Sberbank exploring providing banking services in Bangladesh

Russia's largest lender Sberbank said it was exploring the possibility of providing banking services for clients working with companies in Bangladesh, as Russian businesses look east for international expansion.

Sberbank has already held two rounds of talks with Bangladesh's central bank about opening a branch there, reports Reuters.

Bangladesh Bank Spokesperson Md Mezbaul Haque acknowledged that several officials of "a Russian bank" have come to Bangladesh "to learn about banking activities here – how to get permission to open a bank or operate a branch here".

"But that does not mean that anyone inquiring about these matters will open a bank in Bangladesh," he told The Business Standard on Friday. "It is still not very clear that Russia will open a bank in our country."

He further said, "There are rules for getting a licence to open a bank: one has to apply, inject capital, then get the central bank's permission. The process takes from one to one and a half years."

Sberbank was targeted with sweeping Western sanctions soon after Moscow invaded Ukraine in February 2022, withdrawing completely from the European market with the sale of its Austrian subsidiary last month, reports Reuters.

Like many Russian companies, Sberbank has been pivoting towards Asia, where few countries have joined in with sanctions against Moscow, as it looks to find new trading partners.

"Sberbank is exploring all possibilities and formats for providing banking services at the request of Russian clients doing business with companies in Bangladesh," Anatoly Popov, deputy chairman of Sberbank's executive board, said.

Russia is looking for alternative means of trade to the dollar. A Sberbank delegation has already travelled to Dhaka to discuss opening a branch there, Bangladeshi media reported.