Russia has warned that it will abandon the Black Sea grain deal if the Russian Agricultural Bank Rosselkhozbank is not reconnected to the international payment system SWIFT.
Reuters quoted sources as saying on July 13 that the European Union is considering reconnecting the sanctioned Russian bank with the global financial network SWIFT in an effort to rescue the Black Sea grain deal.
According to those familiar with the discussions, the EU could reconnect a subsidiary of Rosselkhozbank with SWIFT. Rosselkhozbank is a major Russian agricultural bank specializing in serving grain and fertilizer transactions.
According to Reuters, this plan was proposed by Moscow through negotiations mediated by the United Nations.
Rosselkhozbank has been excluded from SWIFT as Russia has been sanctioned by the West for its military campaign in Ukraine. The reconnection of Rosselkhozbank is one of Moscow's conditions to extend the grain export agreement between Ukraine and Russia, known as the Black Sea Cement Initiative.
The agreement was initially mediated by the United Nations and Turkey and signed in July 2022, but will expire on July 18.
Last week, Russia said it had no basis to extend the deal because agreed targets on grain exports to poor countries and blocking Russian grain exports were not met.
Sources also told Reuters that UN Secretary-General Antonio Guterres proposed to President Vladimir Putin that Russia extend the Black Sea grain deal in exchange for a subsidiary of the Russian Agricultural Bank being reconnected to the international payment system SWIFT.
Guterres has reportedly suggested Russia extend the deal for several months so that the EU has time to connect Rosselkhozbank's subsidiary with SWIFT.
Under the Black Sea Cement Initiative, UN officials agreed to help Russia export food and fertilizers to foreign markets. Russian food and fertilizer are not sanctioned by the West, but sanctions on payment, logistics and insurance are a barrier to exports of these items.
