Russia seeks sanctions relief in grain deal talks

The demand would unblock payments for Russian grain and other foodstuffs

MOSCOW:

Russia wants the West to ease restrictions on state agriculture lender Rosselkhozbank to facilitate Russian grain exports, according to four sources familiar with the request, made during talks to extend a deal on food shipments from Ukraine.

Moscow suspended its participation in the secure Black Sea grain corridor in late October but rejoined after four days, easing fears of further disruptions to grain exports from key supplier Ukraine at a time of rampant global food inflation.

President Vladimir Putin has reserved Russia’s right to halt the United Nations-brokered agreement again, while UN Chief Antonio Guterres is pushing Moscow to agree to extend the pact beyond its scheduled expiry on November 19.

Russia has not detailed its demands publicly beyond calls to unblock Russian fertiliser stuck in European ports and warehouses, and resume exports of ammonia, an important ingredient in fertiliser, through a Russia-Ukraine pipeline.

The four sources, who declined to be identified due to the sensitivity of the subject, said Russia was asking Western countries to allow state lender Rosselkhozbank to restore its relations with correspondent banks despite Western sanctions.

This would allow the bank, which has not had a major role in the international grain trade so far, to process payments for Russian grain and other foodstuffs, two of the sources added. Before the latest sanctions, such payments were handled by international banks and subsidiaries of other Russian banks in Switzerland.

The sources did not say what response, if any, Russia had gotten to its proposals.

Published in The Express Tribune, November 6^th, 2022.

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