The aim of the measure is to ensure grain exports; The reinstatement was proposed by Russia and is being mediated by the United Nations
The EU (European Union) is considering giving permission to a subsidiary of the Russian Agricultural Bank, owned by the Kremlin, to connect with Swift. The financial institution was banned from the international payments system on June 14, 2022 as part of sanctions against Moscow over the war in Ukraine.
The purpose of the reconnection would be to resume grain exports through Ukrainian Black Sea ports, the Financial Times announced this Monday (July 3, 2023).
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The resumption was proposed by Russia, which has threatened not to renew the Black Sea Grains Initiative, in place since July 2022, unless the West relaxes its restrictions on Russia’s grain and fertilizer exports. According to the newspaper, the negotiations on the reconnection of the Russian Agrarian Bank to Swift will be mediated by the United Nations (UN).
The Grains Agreement was intended to curb global food price increases. Ukraine, one of the world’s largest grain exporters, was initially banned by Russia from shipping the product in its Black Sea ports.
Since its inception, the agreement has been extended several times. The current one expires on July 17.