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However, with the onset of the Russia-Ukraine war in February 2022, suppliers faced challenges in shipping apparels to Russia thanks to sanctions imposed by the Western powers.
Notably, the suspension of large Russian banks from using international electronic payment system SWIFT disrupted financial transactions across borders.
Despite these hurdles, exporters quickly adapted by exploring alternative routes, with Poland emerging as a crucial third-party source for supplying apparel to Russia.
Many exporters opted to ship goods to Poland, where they could receive payment in US dollars before onward export to Russia. This strategy proved effective, as evidenced by a notable increase in garment shipments to Poland, reaching $884.45 million during the July–December fiscal 2023–24.
Poland’s apparel exports also benefitted from the zero-duty benefit provided by the European Union’s Everything but Arms (EBA) scheme, surpassing the $1 billion benchmark in 2020–21 and generating $1.38 billion for the year.
Despite a slight decline in the following year due to inflationary pressures, Poland’s apparel exports reached a record $ 2 billion. However, apparel exports to Russia experienced a significant decline in FY ’23 due to conflict-related limitations, although they rebounded in FY ’24.
Speaking to the media, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem, highlighted the ease of transportation of garments by road from Poland to Russian market, leveraging their geographical proximity.
Fibre2Fashion News Desk (DR)