Threatening grain deal: Russia criticizes EU concession

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The EU’s proposed creation of a subsidiary of Russia’s State Agricultural Bank to handle financial transactions is a “deliberately unworkable plan,” Russian Foreign Ministry spokeswoman Maria Zakharova said in Moscow on Tuesday. The establishment of such a bank and the connection to the international banking communication network Swift takes months.

However, the grain agreement, which is also important for the fight against hunger in the world, expires on July 17. Russia had demanded, among other things, the lifting of sanctions against its agricultural bank. However, this requires the consent of the EU countries, which is also considered unenforceable. Therefore, setting up a subsidiary should be a way out.

In the wake of Western sanctions over Ukraine’s war, Russia has complained of massive restrictions on its own grain and fertilizer exports to world markets. The Russian leadership has therefore been demanding for months more effort from the United Nations to remove the export barriers. Russian banks are finding it difficult to process financial transactions due to the separation of the Swift network. Insuring ships and cargo is also experienced as difficult.

“Under these circumstances, it is clear that there is no basis for continuing the Black Sea Initiative, which expires on July 17,” Zakharova said. Until then, Russia will work to implement the agreement, in particular to ensure that all cargo ships leave the Black Sea by then. After that, just like after the start of the Russian offensive war against Ukraine more than 16 months ago, the ships would no longer have any protection.

After the invasion of Ukraine on February 24 last year, Russia blocked grain exports from the neighboring country for months. In the summer of 2022, with the mediation of the United Nations and Turkey, an agreement was reached between the two warring parties, as a result of which Ukrainian grain was shipped again. Most recently, it was extended for a further two months in mid-May – coupled with Moscow’s demand to now facilitate its own exports as well.

(SDA)

Source: Blick