In response to Western sanctions imposed on Russia, Bangladeshi Foreign Minister Dr. A K Abdul Momen stated, “If additional sanctions are imposed in the future, they should first consult with developing nations like us. They should take steps to determine how much harm these penalties will do and how we will compensate for this loss.”
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| Bangladeshi Foreign Minister Dr. AK Abdul Momen |
Companies who gain indirectly from the Russia-Ukraine conflict should reimburse the less developed nations harmed by it, according to Bangladesh Foreign Minister Dr. AK Abdul Momen.
A two-day conference of the G-20 economic alliance’s foreign ministers began Tuesday in India (Thursday). Bangladesh’s foreign minister also attended the conference.
The foreign minister stated in the interview, “As a result of the war, certain firms in the energy and defense industries are gaining indirectly. As a result, our demand for these rich firms is that they donate 20% of their revenues to nations like ours who are the most devastated by the conflict.”
Notwithstanding the fact that Dr. Momen did not mention a specific firm. Following one year of the Russia-Ukraine war, Bangladesh’s foreign minister made such a claim on the world stage.
According to the World Bank, Ukraine’s GDP dropped by 35% last year as a result of the war.
The war between Russia and Ukraine is having a direct impact on the global economy. Especially nations like Bangladesh, who import the majority of their overall gasoline needs.
According to the Foreign Minister, Bangladesh imports around 95% of its overall energy needs.
Momen stated, “Typically, we purchase petrol from outside the nation. The price of gasoline has recently skyrocketed. As a result, the country’s inflation rate has risen. Subsidies are being used to try to control inflation.”
“To cope with this problem, the government must generate impetus. We want the war to come to an end. We think that a peaceful solution may be reached via discussions.”
Dr. Momen argues that G20 countries should provide ‘compulsory’ compensatory payments to LDCs.
“They are the leaders of the G20 coalition, these are the leaders of the globe,” added the foreign minister. Nobody cares if I seek compensation. Yet, if the G20 leaders make the demand, it will be met. They will oblige war profiteering businesses to reimburse war-affected countries.”
The war formally began on February 24, 2014, when Russia invaded Ukraine.
Following the commencement of the conflict, a UN assessment stated that the developing nations, who were already saddled with debt as a result of the Covid pandemic, would have an even worse economic condition as a result of the Russia-Ukraine war.
“The Russia-Ukraine confrontation is driving up commodity prices and increasing trade obstacles, contributing to inflationary pressures,” according to the research. At the same time, the predicted growth to overcome the shock of the corona virus has not materialized. This has major consequences for impoverished and vulnerable nations.” Reading.”
“Many developing nations are already at considerable risk owing to debt stress,” according to the United Nations. As a result of the war, the ‘balance of payments’ and financial strains have risen. This will raise the countries’ debt-related dangers even higher.”
Bangladesh chose in January of this year to seek a 4.7 billion US dollar loan from the IMF to deal with the current economic turmoil.
With the expanded credit arrangement, the agency would lend $3.3 billion to Bangladesh.
And as the first nation in Asia, the IMF will lend additional 1.4 dollars as a part of collaboration in the activities connected to climate change under the ‘Resilience and Sustainability Fund’.
Bangladesh has already received 476 million dollars from the 4.7 billion dollar loan.
In a statement, the IMF stated, “The economy of Bangladesh was quickly rebounding from the corona outbreak. Nevertheless, the Russia-Ukraine war badly harmed it. As a result, the country is in financial difficulty. Bangladesh’s currency has fallen in value, resulting in a foreign exchange deficit.”
The Foreign Minister emphasized the importance of food security. According to Momen, Bangladesh is now battling to maintain food security. He believes that the G20 leaders should address this issue.
At the same time, Dr. discussed Western countries’ sanctions against Russia. Momen. He believes that the embargo is causing the most harm to underdeveloped countries.
On the Russia-Ukraine conflict, the foreign minister added, “The economic equilibrium has been disrupted as a result of this war, which began with the supply chain. This has a major impact on developing nations like ours.”
In terms of Western sanctions against Russia. Momen went on to say, “If further sanctions are imposed in the future, they should first consult with developing nations like us. They should take steps to determine how much harm these penalties will do and how we will compensate for this loss.”
Bangladesh is not a member of the G20 industrialized countries alliance. Nevertheless, India, the host country for the alliance’s next meeting, has invited nine countries from various areas of the world as ‘guest countries’ in addition to the member countries. Bangladesh has been designated as a ‘guest nation’ in the South Asian area.