UNITED NATIONS (Reuters) – The European Commission is actively supporting efforts by the United Nations and Turkey to extend the Ukraine grain export deal in the Black Sea, which is set to expire on Monday. The European Union (EU), through its spokesperson, has expressed openness to exploring all solutions to ensure the continuation of the agreement.
Last Wednesday, sources familiar with the discussions revealed that the EU is considering the option of linking a subsidiary of Russia’s Agricultural Bank (Rosselkhozbank) to the international payment network SWIFT, thus facilitating grain and fertilizer transactions. Additionally, U.N. Secretary-General Antonio Guterres proposed to Russian President Vladimir Putin via letter on Tuesday to allow the Black Sea grain deal to continue for a few more months, giving the EU sufficient time to connect a Rosselkhozbank subsidiary to SWIFT.
Emphasizing the priority of ensuring that Ukrainian grain can reach the global market, a spokesperson for the European Commission expressed the EU’s call for all parties involved to extend the Black Sea deal. The EU spokesperson in Brussels added, “We are assisting the talks led by the U.N. and Turkey as required, and we are open to exploring all solutions that contribute to our objective, while also impeding Russia’s ability to wage war in Ukraine as much as possible.”
One of Moscow’s key demands is the reconnection of Rosselkhozbank to SWIFT. Following Russia’s invasion of Ukraine in February 2022, the European Union severed its ties with the bank in June 2022.
Russian Foreign Ministry spokeswoman Maria Zakharova expressed dissatisfaction with the alternative proposal, stating that it would take “many months” to establish a subsidiary and an additional three months to connect it to SWIFT. Moscow has threatened to abandon the Black Sea grain deal, as several of its demands regarding the dispatch of its own grain and fertilizer abroad remain unmet. Currently, the last ship operating under the Black Sea agreement is loading cargo at the Ukrainian port of Odesa before the Monday deadline.
In response to Turkish President Tayyip Erdogan’s remarks about suggestions made by Putin, Russian Foreign Minister Sergei Lavrov stated that he was unaware of any new proposals pertaining to the Black Sea grain deal.
The Black Sea Grain Initiative was brokered by the United Nations and Turkey with the participation of Russia and Ukraine in July 2022, aiming to alleviate the global food crisis exacerbated by Russia’s invasion and blockade of Ukrainian ports. As part of the agreement, a three-year memorandum of understanding was reached, wherein U.N. officials pledged to assist Russia in exporting its food and fertilizer products to foreign markets.
In light of the lack of access to SWIFT, U.N. officials have managed to address the issue by collaborating with JPMorgan Chase & Co to process some Russian grain export payments, with reassurances from the U.S. government. Furthermore, the United Nations is working with the African Export-Import Bank (Afreximbank) to establish a platform that will facilitate transactions for Russian exports of grain and fertilizer to Africa.
Britain has also played an instrumental role in enabling a complex payment system for Russian grain, with Britain’s U.N. Ambassador Barbara Woodward highlighting the close collaboration with the City of London.
(Reporting by Michelle Nichols; Editing by Angus MacSwan)
Credit: The Star : News Feed
