DHAKA: Bangladesh and Russia have agreed to use yuan to settle payment for a nuclear plant Moscow is building in the South Asian country, a Bangladesh government official said on Monday.

Bangladesh is constructing the first of two nuclear power plants in collaboration with Russia’s state-owned atomic company Rosatom in a $12.65 billion project, 90% of which is financed through a Russian loan repayable within 28 years, with a 10-year grace period.

“Russia wanted us to make payment in rouble but that’s not possible for us. So we have agreed to pay in Chinese yuan,” Uttam Kumar Karmaker, a senior official in the Bangladesh Economic Relations Division, told Reuters.

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The project will help curb frequent power cuts which analysts expect to worsen this year as Bangladesh’s ability to import fuels has taken a hit following a rapid decline in the value of its currency and foreign exchange reserves.