Case File

The Rooppur Power Plant Scandal

Author
Jack Cinamon
Published on
April 29, 2025

Contents

Contents

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Introduction

Introduction

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In January 2013, Tulip Siddiq - then a Councillor in the Camden London Borough Council - accompanied her aunt, Sheikh Hasina - then Prime Minister of Bangladesh - on a four-day visit to Moscow, which included a meeting at the Kremlin with Russian President Vladimir Putin. The trip marked a significant diplomatic milestone, as Bangladesh and Russia signed a billion-dollar arms deal tied to an offset agreement involving nuclear power investment. The deal emerged at a particularly strategic moment. Bangladesh was seeking to expand its military, including plans for a new air base near the Myanmar border and the acquisition of several naval frigates from China. With a population of approximately 160 million (2013 figures), the country also faced growing energy demands. A nuclear power plant - projected to meet up to 20% of national electricity needs once operational - was deemed essential.

To finance the arms deal, Russia agreed to loan the full $1 billion and also, as part of an offset agreement, cover by loan nearly all construction costs for the nuclear energy project. Bangladesh would guarantee repayment of these loans through access to its newly discovered gas fields, granted to Gazprom, Russia’s state-owned energy giant. This arrangement paved the way for the construction phase of the Rooppur Nuclear Power Plant.

As with many offset agreements in the global arms trade, the deal raised concerns about potential kickbacks and corruption.

Case Details

Case details

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Seller country
Russia
Seller company
Rostec
Buyer country
Bangladesh
Goods category
Helicopters, Missiles, Missile Systems, Shells, Surveillance Equipment, Armoured Vehicles
Equipment sold
Anti-tank missiles, air defence systems, armoured vehicles, automatic grenade launchers, radar equipment, and four types of air force armaments, including the conversion of fighter jets and Mi-17 transport helicopters.
Deal value
$1 billion
Sum involved in corruption
At least $5 billion (from offset project)
Start year
2013
Outcome status
Legal Investigation Ongoing

Actors

Actors

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  • Sheikh Hasina - Bangladeshi politician; former Prime Minister of Bangladesh (1996-2001; 2009-2024); daughter of the first President of Bangladesh, Sheikh Mujibur Rahman; accused of corruption.

  • Sheikh Rehana Siddiq - Bangladesh politician; sister of Sheikh Hasina; accused of corruption.

  • Tulip Saddiq - British politician as Member of Parliament for Hampstead and Highgate, previously Hampstead and Kilburn (2015-2025); Treasury Minister (2024-2025); the daughter of Sheikh Rehana, who is the sister of Hasina; accused of corruption.

  • Sajeeb Wazed Joy - Bangladeshi politician; son of Sheikh Hasina; accused of corruption.

  • Vladimir Putin - Russian politician; former intelligence officer; President of Russia (2012-present).

  • Rosoboronexport - Russia's sole state agency for arms exports and imports; owned by Rostec,

  • Russia’s state-owned defence conglomerate; headquartered in Moscow.

  • Rosatom - Russia’s state-owned nuclear energy corporation; headquartered in Moscow.

  • Gazprom - a Russian state-owned energy giant based in Saint Petersburg, wasn't directly involved in the corruption scandal but was used to secure access to Bangladesh gas fields in return for ensuring Bangladesh repaid Russian loans.

Allegations

Summary of Corruption Allegations

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Tulip Siddiq has been accused of aiding her aunt, Prime Minister Sheikh Hasina, in brokering a corrupt 2013 deal with Russia for the $12.65 billion Rooppur nuclear power plant, and of embezzling $5 billion from the project.

The Rooppur plant is Bangladesh’s first nuclear facility and one of the country’s largest infrastructure projects. However, the 2013 nuclear energy cooperation was part of a broader agreement that included a $1 billion arms deal with Russia – Bangladesh’s largest defence agreement since its independence in 1971.

The deal covered armoured vehicles, infantry weapons, air defence systems, and Mi-17 transport helicopters. Bangladesh declined to acquire eight advanced MiG-29 fighter jets due to their $500 million price tag. Notably, Hasina had previously faced prosecution over bribery in a 2009 defence deal but was acquitted following her re-election.

This offset agreement reflects a classic arms-for-energy model, often applied in the global arms trade. Gazprom – Russia’s largest natural gas producer – secured rights to drill ten natural gas wells in Bangladesh as part of the broader arrangement. The recent discovery of offshore gas reserves was seen as a guarantee of repayment for the arms loan, strengthening Russian confidence in the deal.

The Rooppur case exemplifies how arms deals can pave the way for energy cooperation, often accompanied by significant corruption risks in large-scale infrastructure projects.

Timeline

Timeline

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2008
  • 29 DecThe Awami League wins the general election, and Hasina assumes office as prime minister for a second time.
2012
  • 26 AprGazprom enters the Bangladesh market by signing agreements with three subsidiaries of government-owned Petrobangla (Bangladesh Oil, Gas & Mineral Corporation): Bangladesh Gas Fields Company Limited (BGFCL), Sylhet Gas Fields and Bapex. Under the $193.5 million deal, Gazprom will drill 10 new gas wells across six different gas fields in the country.
2013
  • 15 JanThe meeting at the Kremlin in Moscow takes place. In attendance are Sheikh Hasina, Sajeeb Wazed Joy, Sheikh Rehana Siddiq, Tulip Siddiq and Vladimir Putin. They brokered a deal for Russia’s financing of the $12.65 billion Rooppur Nuclear Power Plant, and a $1 billion arms deal. The construction project would be bankrolled by Moscow with a 90% loan. These loan repayments were guaranteed by Gazprom’s access to gas fields. As part of the deal, Russia initially committed $500 million to fund the launch of construction for Bangladesh’s first nuclear power plant, located in Rooppur in the country’s far west.
  • The arms negotiations initially involved the purchase of military equipment and weaponry valued at $850 million to be financed through credit. However, at Bangladesh's request, this was later increased to $1 billion, with an interest rate of 4.5 percent. Repayment was scheduled to begin in 2018 and spread over a period of 18 years in installments.
  • Russian President Vladimir Putin declared, “Our countries intend to expand their military and technological cooperation” and that “Russia will extend Bangladesh a credit of $1 billion, which will be spent on the purchase of Russian weapons and military technology.
  • Bangladesh would acquire up to seven categories of land force equipment, including anti-tank missiles, air defence systems, armoured vehicles, automatic grenade launchers, and radar systems. Additionally, the air force would receive four aircrafts, upgraded fighter aircraft and Mi-17 transport helicopters; procured from Rosoboronexport, Russia’s state-owned arms company.
  • 2 OctHasina inaugurated the first phase of construction for the power plant.
2015
  • 12 AprA British newspaper publishes a story alleging that Tulip Siddiq concealed information of her 2013 meeting with Putin when the controversial billion-dollar arms deal was signed.
  • 7 MaySiddiq is elected as Labour MP for Hampstead and Highgate for the first time and would go on to assume various front bench positions for the Labour Party.
  • 25 DecThe Bangladesh Atomic Energy Commission signed an agreement with Russia's Rosatom subsidiary, Atomstroyexport, to implement the nuclear energy project.
2016
  • 26 JulBangladesh signed an intergovernmental credit agreement with Russia amounting to $11.385 billion - 90% of the total cost of the project - to finance the construction of the 2,400 MW nuclear power plant. The two planned Rooppur reactors are expected to cost $4 billion, with Russia also agreeing to continue financing construction after the first phase of the project is complete. According to experts, the cost of construction in Bangladesh is significantly higher than in other countries, including neighboring India, despite using the same Russian technology. Analysts suggest that the price tag is inflated far beyond any rational pricing, leading to charges of corruption and collusion on the part of the Bangladeshi officials responsible for the deal.
  • The plant is being built by Rosatom, Russia’s state-owned nuclear energy corporation. Sheikh Hasina and her family members have been accused of receiving kickbacks related to the purchase of Soviet-era nuclear reactors from Rosatom. Additionally, the project has been marred by corruption scandals, most notably the so-called 'Rooppur Pillow Scandal,' which drew public outrage over grossly inflated prices for furnishing the 966 apartments at the plant - including the cost of pillows.
2023
  • Gazprom International identified five new gas wells for further exploration in Bhola, south-central Bangladesh and began to negotiate expansion.
2024
  • 9 JulFollowing Labour’s general election victory, Tulip Siddiq is appointed Economic Secretary to the Treasury and City Minister in Prime Minister Keir Starmer’s cabinet, with partial responsibility for overseeing the UK’s anti-corruption efforts.
  • JulProtests - now known as the July Revolution or the Student-People’s Uprising - erupt after students oppose a proposed quota system for government jobs. What began as student-led demonstrations quickly escalated into a nationwide movement, and were met with a violent crackdown by police and military forces. The UN would later [report] that as many as 1,400 people were killed.
  • 5 AugHasina resigned and fled Bangladesh for India following weeks of deadly demonstrations against her government. This was followed by the fall of her political party, the Awami League. She now resides in an undisclosed location in New Delhi.

Outcomes

Investigation Outcomes

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2024
  • 3 SepBobby Hajjaj, the chairman of Bangladesh’s National Democratic Movement, filed a petition with the High Court requesting that the Anti-Corruption Commission (ACC) investigate claims that Sheikh Hasina and her family were involved in the embezzlement of $5 billion from the Rooppur Nuclear Power Plant Project.
  • 17 DecThe ACC announced that it had initiated an investigation against Sheikh Hasina, Siddiq and other and her family members, regarding allegations of embezzlement.
  • 23 DecThe Anti-corruption commission officially launched an inquiry into allegations that Hasina and family members had “embezzled $5 billion” from the Rooppur plants via “various offshore bank accounts in Malaysia”. It is reported that Russia assisted Hasina in siphoning this $5 billion to various Malaysian banks from various Russian slash funds kept in the Malaysian banks.
  • "The claims of kickbacks, mismanagement, money laundering, and potential abuse of power raise significant concerns about the integrity of the project and the use of public funds", the commission said.
  • 24 DecRosatom slams reports of corruption at the Rooppur nuclear plant as false.
2025
  • 14 JanSiddiq resigns as Treasury Minister following mounting pressure over the ongoing investigation in Bangladesh. It was revealed that she failed to disclose her involvement in dealings with President Putin during a 2013 visit, prior to her election as MP in 2015.
  • 26 FebProfessor Muhammad Yunus, Chief Adviser to the Interim Government of Bangladesh, met with Rosatom Director General Alexey Likhachev and agreed to extend the loan period for the Rooppur Nuclear Power Plant, giving Bangladesh until the end of 2026 to utilise the funds. The repayment of the loans have also been delayed, scheduled to start between 2027 and 2029.
  • 10 MarIn a separate case from the $5 billion ACC embezzlement investigation into the nuclear deal, but still part of the broader inquiry, the ACC petitioned the Bangladeshi courts to bar Hasina, Siddiq, and other family members from traveling. This case concerns the illegal allocation of plots. However, it won’t be long before charges are brought in relation to the Rooppur plant, which stemmed from the arms deal.
  • 10 AprThe same court had previously issued arrest warrants for Hasina, her daughter Saima Wazed, and 16 others in connection with the plot allocation case.
  • 13 AprAn arrest warrant is issued for Tulip Siddiq by the ACC as she is accused of receiving a plot of land illegally from Hasina.
  • The ACC investigation is ongoing, with updates to follow.

References

References

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  • AFP, “Bangladesh launches $5 billion corruption probe against Sheikh Hasina's family,” Hindustan Times (online), 23 December 2024. Link

  • Agence France Presse, “Russia, Bangladesh seal $1 bln arms deal,” Arab News (online), 15 January 2013. Link

  • Bangla News 24, “Hasina, Joy, Tulip embezzled $5bln from Rooppur project: Report,” 18 August 2024. Link

  • Daily Sun, “Russia seeks continuity of Gazprom’s work in Bangladesh,” 11 March 2025. Link

  • Dhaka Tribune, “HC issues rule over ACC’s inaction on alleged RNPP fund embezzlement by Hasina’s family,” 15 December 2024. Link

  • Dhaka Tribune, “Rooppur Nuclear Power Plant: Separating fact from fiction in the $5bn embezzlement allegations,” 21 August 2024. Link

  • Faysal Atik, “‘Uncertainty’ looms in Rooppur Power Plant’s progress. When will it be operational?” BD News 24 (online), 6 March 2025. Link

  • George Parker, Anna Gross, Chris Kay, and Krishn Kaushik, “City minister Tulip Siddiq named in Bangladesh corruption claim,” Financial Times (online), 19 December 2024. Link

  • Mamun Abdullah, “ACC launches probe against Hasina, her family over 80,000C corruption,” Dhaka Tribune (online), 17 December 2024. Link

  • Mohammad Azizur Rahman and Geetha Narayanasamy (ed), “Gazprom, Sinopec vying to win drilling deal for Bangladesh onshore gas wells,” S&P Global (online), 11 February 2014. Link

  • Pippa Crerar, “Tulip Siddiq questioned over multibillion-pound embezzlement allegations,” The Guardian (online), 23 December 2024. Link

  • Refugee Review Tribunal, Australia, “RRT Research Response,” 23 March 2009. Link

  • Reuters, “Russia grants Bangladesh $1 billion loan for weapons: Putin,” 15 January 2013. Link

  • Reuters, “UK lawmaker Tulip Siddiq appointed as City Minister,” 9 July 2024. Link

  • Samaan Lateef and Dominic Penna, “Tulip Siddiq hit with arrest warrant on corruption charges,” The Telegraph (online), 13 April 2025. Link

  • Shaikh Abdullah and Saifuddin Saif, “Russia agrees to extend loan disbursement for Rooppur until 2026,” The Business Standard (online), 27 February 2025. Link

  • Simon Walters, “Labour candidate accused of going to extraordinary lengths to cover up links to Putin... and a £1bn arms deal,” The Mail on Sunday (online), 11 April 2015. Link

  • Syedur Rahman, “Enforcing anti-corruption efforts around the Rooppur Nuclear Power Project,” Rahman Ravelli (online), 7 January 2025. Link

  • Tabassum Tarin, “BANGLADESH-RUSSIA ARMS DEAL: A BRIEF OVERVIEW,” Academia (online). Link

  • TASS, “Rosatom slams reports on corruption at Rooppur nuclear plant as false,” 24 December 2024. Link

  • United Nations Human Rights Office, “Human Rights Violations and Abuses related to the Protests of July and August 2024 in Bangladesh,” 12 February 2025. Link