EU considers Russian bank concession to safeguard Black Sea grain deal

EU considers Russian bank concession to safeguard Black Sea grain deal

The Financial Times reported on Monday that the European Union is considering a proposal for Russian Agricultural Bank, also known as Rosselkhozbank, to establish a subsidiary in order to reconnect to the global financial network. This move is seen as a gesture to Moscow, as the bank is currently under sanctions. The main objective of this proposal is to safeguard the Black Sea grain deal, which allows Ukraine to export food to global markets.

Last week, Russia stated that it saw no reason to extend the grain deal beyond July 17. The country criticized the West for its actions regarding the agreement, describing them as “outrageous.” However, Russia assured poor countries that its grain exports would continue. In response to this, Moscow has proposed a plan through U.N.-brokered talks. This plan would enable the bank unit to handle payments related to grain exports, according to sources familiar with the matter.

The proposed subsidiary would have access to the SWIFT global financial messaging system. This system had been closed to the largest Russian banks following the invasion of Ukraine last year. By allowing the bank unit to use SWIFT, Russia aims to restore its access to this crucial financial network.

Russia and Ukraine are significant players in the global grain and oilseed markets. Both countries are among the world’s top agricultural producers, with commodities ranging from wheat and barley to rapeseed and sunflower oil. Additionally, Russia holds a dominant position in the fertilizer market.

In addition to restoring SWIFT access, Russia is also seeking the resumption of supplies of farm machinery and parts, as well as the removal of restrictions on insurance and reinsurance.

The article was reported by Jahnavi Nidumolu in Bengaluru and edited by Kim Coghill and Clarence Fernandez. The Thomson RushHourDaily Trust Principles apply to this report.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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