Bangladesh is weighing a proposal that would see Russian crude oil refined in India before the finished fuel is imported back, as the country grapples with supply pressures triggered by the Middle East conflict. According to people aware of the development, the arrangement under consideration would require Bangladesh to pay for the import of crude, its refining in India, and the transportation of the refined fuel.The energy and mineral resources division in Bangladesh has already moved the proposal forward this week, sending a request to the country’s power and energy minister Iqbal Hasan Mahmud Tuku. The request seeks approval to begin discussions with the ministry of foreign affairs for a government-to-government (G2G) agreement, Dhaka-based sources told ET.This comes as Bangladesh’s lone state-run refinery in Chittagong is not considered suitable for processing Russian crude, which is predominantly heavier in nature. With an annual refining capacity of 1.5 million tonnes, the facility is mainly designed to handle crude from the Middle East, leaving the country reliant on imported refined petroleum products.Energy cooperation between India and Bangladesh has also been in focus, with rising diesel imports from India featuring prominently during the Bangladesh Foreign Minister’s recent visit to India. The two countries already maintain cross-border energy connectivity through a diesel pipeline running from Siliguri to Parbatipur in Dinajpur.That pipeline allows imports from Numaligarh Refinery Limited under a 15-year agreement signed in 2023.A temporary waiver on US sanctions related to Russian oil exports has opened a limited window for Bangladesh to consider indirect procurement routes.Additionally, Bangladesh has proposed importing up to 600,000 tonnes of Russian diesel, according to earlier ET reports.In a related development, Russian Ambassador to Bangladesh Alexander Khozin met Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku last month to discuss strengthening bilateral energy cooperation.
