The European Union is considering a proposal for the Russian Agricultural Bank to establish a branch to reconnect with the SWIFT global financial network. Since the bank is under sanctions, the proposal to close the branch is supposed to protect the Black Sea grain agreement that allows Ukraine to export food to global markets.
The move comes after Russia said last week that it saw no reason to extend the grain deal beyond July 17 because the West had acted in an “outrageous” way on the previous agreement, even as it assured poor countries that Russian exports would grain also continue, reports the Financial Times.
The British paper’s unnamed sources said that Moscow’s plan, proposed through UN-brokered negotiations, would allow the bank’s unit to process payments related to grain imports. The new unit would be allowed to use SWIFT for financial transactions.
Ukraine’s Ministry of Foreign Affairs stated that the EU wants to facilitate the agreement on grain somehow. At the same time, Kyiv warned that although the idea was good and useful, it was not good to make concessions to blackmail Moscow.
Russia and Ukraine, as the world’s two leading grain producers, are the main players in the grain and oilseed markets, from wheat to barley and from oilseed rape to sunflower. Russia is also dominant in the fertilizer market. In addition to joining the SWIFT system, Russia is seeking to continue the supply of agricultural machinery and parts.
The agreement on the export of Ukrainian grain across the Black Sea was extended for two months
The agreement on the export of Ukrainian grain via the Black Sea has been extended by two months, Turkish President Recep Tayyip Erdoğan said on Wednesday.
“It was decided to extend the grain agreement reached in July 2022 for another two months,” Erdogan said.
The agreement between the UN, Ukraine, Russia and Turkey, signed in July last year, enabled the export of more than 30 million tons of Ukrainian grain in the last ten months and helped alleviate the world food crisis caused by the war in Ukraine. It was previously renewed for 60 days on March 19.
The current renewal is supposed to be valid for 120 days, but the Russian authorities agreed to only 60 days.
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