United Nations (UN) Secretary-General Antonio Guterres has proposed to Russian President Vladimir Putin to extend the agreement that allows for the safe export of grains to the Black Sea from Ukraine, in exchange for linking a branch of Russia’s agricultural bank with the international payment system SWIFT, according to Reuters sources.
Russia has threatened to withdraw from the grain agreement, which expires on Monday, because some requests to send its grains and fertilizers abroad have not been met.
Prior to the deadline, two vessels at the Ukrainian port of Odessa are currently in the process of loading their final shipments operating under the Black Sea Agreement.
Moscow’s main request includes the reinstatement of the Russian Agricultural Bank (Rosselkhozbank) into the international payment network SWIFT. The European Union had severed ties with Rosselkhozbank in June 2022 as a sanction in response to Russia’s invasion of Ukraine.
In May, an EU spokesperson stated that the release of Russian banks from sanctions was not under consideration.
However, there are indications that the EU is now considering lifting sanctions on a branch of Rosselkhozbank, particularly for transactions related to grains and fertilizers. Three sources revealed this information to Reuters on Wednesday. At the moment, there is no immediate response from the European Commission regarding this matter.
According to these sources, Guterres proposed to Putin that Russia allow the continuation of the Black Sea grain agreement for a few more months, thus giving the EU sufficient time to establish a link between SWIFT and a branch of Rosselkhozbank.
Guterres sent a letter to Putin on Tuesday, proposing a way forward to further facilitate Russian food exports and ensure the continuation of Ukrainian grain shipments to the Black Sea, a UN spokesperson said on Wednesday.
“The objective is to remove obstacles that affect financial transactions through the Russian Agricultural Bank, a major concern expressed by the Russian Federation, and simultaneously allow the uninterrupted flow of Ukrainian grains through the Black Sea,” said UN spokesperson Stephane Dujarric.
No further details were given regarding the proposal, but it was mentioned that Guterres is actively engaging with all relevant parties and is open to further discussing the proposal with Russia.
The Kremlin spokesperson did not immediately respond to the request for comment.
In July 2022, the United Nations and Turkey facilitated the Black Sea grain agreement, which involves Russia and Ukraine, in order to address the global food crisis exacerbated by Russia’s invasion of Ukraine and the subsequent blockade of Ukrainian ports.
As part of the effort to persuade Russia to agree to the Black Sea agreement, a three-year memorandum of understanding was established. Under this agreement, UN officials pledged to assist Russia in exporting its food and fertilizers to foreign markets.
Although Russian food exports are not subject to Western sanctions imposed after the invasion of Ukraine, Moscow claims that restrictions on payments, logistics, and insurance have hindered shipments.
To overcome the lack of access to SWIFT, UN officials have collaborated with JPMorgan Chase & Co, an American bank, to process some payments for Russian grain exports. This agreement has received guarantees from the US government.
