More than two dozen Bangladeshi apparel exporters are grappling with a deepening payment crisis, as over $7 million in overdue payments from Russian buyer Concept Group LLC threaten the financial stability of their factories.

In a bold move to break the deadlock, industry leaders proposed an innovative solution: using Bangladesh’s own pending payments for the Rooppur Nuclear Power Plant as a reciprocal mechanism to recover the stalled export earnings.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has raised alarm over growing payment delays, reporting that several buying agents — including Adroit Sourcing, Mother Corporation, P2ZS Apparels Ltd and Zara Fashion — are still awaiting payments for garment shipments under a master contract with Concept Group.

According to the BKMEA president, several buying agents have complained about overdue payments under a $70.2 million master contract, with some payments delayed by over 120 days and, in some cases, more than a year despite timely shipments by Bangladeshi exporters.

BKMEA president Mohammed Hatem explained that the payment delays were largely the result of international banking restrictions imposed on Russia following Western sanctions.

These sanctions have disconnected Russian banks from the SWIFT payment network, making it almost impossible for Russian buyers to transfer payments in US dollars.

As a result, Bangladeshi exporters — particularly those supplying under a master contract with Concept Group — are under severe cash flow strain, unable to realise their export proceeds on time and at risk of breaching their foreign exchange obligations.

At the same time, the Bangladesh government has been unable to transfer its own payments to Russia for the Rooppur Nuclear Power Plant — the country’s largest ongoing infrastructure project — due to the same international banking blockages.

Recognising this overlap, BKMEA has put forward a proposal to link the two payment streams.

According to Hatem, the government could transfer the funds allocated for the Rooppur project into an account controlled by BKMEA or another designated national mechanism.

Russian buyers, including Concept Group, would then be instructed to pay the equivalent amount of Bangladeshi export dues directly to the Russian government.

This approach would, in effect, allow Bangladesh to offset its blocked project payments by recovering its frozen export earnings, he said.

‘Although no formal letters have been issued yet, I have already raised the matter with the Bangladesh Bank Governor and the Secretary of the Economic Relations Division (ERD),’ Hatem said.

‘This mechanism would serve two purposes,’ Hatem explained. ‘First, it would allow us to recover the $7 million owed to our exporters, which is critical for their survival. Second, it would help the government release its stalled project payments, avoiding further delays to the Rooppur project.’

The BKMEA president said that if successful, this workaround could establish a long-term payment channel for bilateral trade between Bangladesh and Russia, helping both countries reduce their reliance on the dollar-dominated global financial system.

Hatem also said that under the proposed arrangement, Russian buyers could deposit payments in rubles, yuan, or other alternative currencies, while Bangladesh would clear its sovereign obligations without violating international sanctions.

Earlier, on April 30, BKMEA president formally wrote to the Russian buyer Concept Group Brand Director Evgeniya, urging urgent action to resolve outstanding payments.

The association called on the buyer to explore alternative payment methods — including using Rubles or Yuan, third-country banks or a barter system, which is seen as the most practical under current sanctions.