Bangladesh urges G-20 to force companies making profit from Ukraine war to compensate poor nations

Bangladesh's overseas curate said companies making "runaway profit" from the warfare successful Ukraine should compensate affected, little developed nations.

"In this war, immoderate companies are making runaway profit... vigor companies and the defence companies," AK Abdul Momen told CNBC's Tanvir Gill connected the sidelines of the G-20 overseas ministers acme successful New Delhi.

"Therefore, we volition reason that those companies that are making runaway profit, they should dedicate astatine slightest 20% of the nett to those countries that are astir affected similar us," helium added, without naming circumstantial companies.

His comments travel a small implicit a twelvemonth aft Russia's penetration of Ukraine. The World Bank estimated Ukraine's system shrank by arsenic overmuch arsenic 35% successful the past year.

The warfare has besides had large planetary economical ramifications, particularly for countries similar Bangladesh which imports astir of its energy. The overseas curate said astir 95% of the country's vigor is imported.

"Naturally, we bargain vigor from abroad. The outgo of vigor has changeable up, resulting successful precocious inflation. We are trying to power the ostentation by providing subsidies and it is costing the government," said Momen.

"Therefore, we privation the extremity of the war. We judge successful peaceful negotiations."

The overseas curate further noted the G-20 countries should marque this compensation "mandatory."

"This is the G-20 leaders — they're the leaders of the satellite ... If I ask, they volition not springiness a damn to it," said Momen. "But G-20 leaders, they tin marque it mandatory for each those companies to wage a proportionality of their runaway nett to the astir affected countries."

Last year, a United Nations study highlighted the fallout from Ukraine's warfare could dramatically worsen the economical outlook for processing countries already grappling with indebtedness financing related to the Covid-19 pandemic.

"Rising commodity prices and commercialized disruptions are exacerbating inflationary pressures and dampened maturation expectations are weighing connected the betterment from Covid-19, with terrible implications for immoderate of the poorest and astir susceptible countries," said the report.

"For galore processing countries already astatine precocious hazard of indebtedness distress, the spillover effects of the warfare whitethorn further worsen indebtedness vulnerabilities owed to the expanding balance-of-payments and fiscal pressures," the UN said.

In precocious January, Bangladesh secured $4.7 cardinal successful loans from the International Monetary Fund to assistance cushion the stroke of a looming fiscal crisis.

It volition get $3.3 cardinal nether the IMF's extended recognition installation and related arrangements, with an contiguous disbursement of astir $476 million. The IMF enforcement committee besides approved $1.4 cardinal nether its recently created resilience and sustainability installation for clime investments for Bangladesh, making it the archetypal Asian state to entree it. 

"Bangladesh's robust economical betterment from the pandemic has been interrupted by Russia's warfare successful Ukraine, starring to a crisp widening of Bangladesh's existent relationship deficit, depreciation of the Taka and a diminution successful overseas speech reserves," the IMF said successful a statement.

Bangladesh's overseas curate besides said nutrient information is different occupation the state is struggling with that the G-20 leaders request to tackle. He was besides captious of the Western sanctions imposed connected Russia, saying the measures are hurting the processing countries the most.

"We are truly upset besides due to the fact that this warfare …. has breached the proviso concatenation arsenic good arsenic fiscal modulation mechanism. And these are hurting us, it's hurting the mediocre processing countries a lot," said Momen.

"Next time, erstwhile they travel up with the sanctions and countersanctions they should astatine slightest consult with radical similar america — the processing countries — to get immoderate thought arsenic however overmuch it volition wounded them. And should make a mechanics truthful that the countries that would beryllium hurt- that they should beryllium compensated with."