Entrepreneurs have warned that Bangladesh may lose one of the most promising apparel export destinations if various Russian lenders are excluded from the SWIFT messaging system in response to the country's invasion of Ukraine

Western nations announced a harsh set of sanctions to punish Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global financial artery that allows the smooth and rapid transfer of money across borders.

If the ban becomes effective, local exporters will face difficulties in receiving payments from Russian importers.

Russia is a growing export destination for Bangladesh's apparel items. In the July-January period of the current fiscal year, the country sent garment items worth $415.47 million, registering a 36.47 per cent year-on-year growth, data from the Export Promotion Bureau (EPB) showed.

Bangladesh shipped apparel items worth $593.66 million to Russia in the last fiscal year, comprising $373.25 million worth of knitwear items and $220.41 million worth of woven items.

The BGMEA has instructed its members not to accept any new work orders from Russia to avoid any hassles in payments.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association, said they are worried about the payment problem due to the uncertainty over the use of SWIFT in Russia.