Shortly after returning to the deal for Ukrainian grain deliveries across the Black Sea, Russia is apparently counting on accommodation from the West when it comes to its own agricultural exports.
The government in Moscow has called for the reduction of sanctions against the state-owned Rosselkhosbank, four people familiar with the process told Portal news agency. Among other things, agricultural transactions are processed via the bank.
Reactions to Russia’s proposal unclear
If Rosselkhozbank were exempted from the sanctions, it could resume processing payments for Russian grain and other foods with foreign banks, two of the people said. The Russian Foreign Ministry and Rosselkhosbank initially declined to comment. The sources did not provide any information on whether and what kind of reaction Russia received to their proposals.
In September, Russia’s Foreign Ministry called for sanctions against Rosselkhozbank to be lifted because it “handles the bulk of all fertilizer and food transactions.” The West is also interested in how grain exports work, as global food prices have risen sharply since the start of the war between Russia and Ukraine. Both countries are among the largest grain exporters in the world.
Russia also wants the blockade of Russian fertilizers in European ports and warehouses lifted. In addition, deliveries of ammonia – a raw material for fertilizers – will resume via a Russian-Ukrainian pipeline.
Another possible way out of the grain deals for Putin
Russian President Vladimir Putin has reserved the right to stop Ukraine’s grain supplies again. The suspension of the agreement and, therefore, the blockade on grain exports was only ended on Wednesday. In any case, the agreement between Russia and Ukraine on grain exports, brokered by the UN and Turkey, expires on November 19.
The UN has previously said it is committed to removing barriers to the export of Russian food and fertilizers. A UN official, who preferred to remain anonymous, said facilitating payments for Russian food and fertilizers through Rosselkhozbank was being discussed with the European Union.