To persuade Russia to renew the grain deal with Ukraine, the EU is considering possible concessions. According to diplomats, the intention is to offer the Russian Agricultural Bank to tolerate the circumvention of EU sanctions.
The bank itself is currently not allowed to do this due to sanctions due to the Russian offensive war against Ukraine. Background to the considerations, according to dpa information, are Russia’s threats to let the agreement on the export of Ukrainian grain via the Black Sea expire in the middle of the month.
Worry about another supply block
The government justifies this with alleged restrictions on Russian agricultural and fertilizer exports, which are expected to be eased in exchange for Ukrainian grain exports. In this context, Moscow is also emphatically demanding an end to sanctions against its state-owned agricultural bank in order to process payments more easily.
Russia blocked grain exports from the neighboring country for months after the attack on Ukraine in February last year. 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.
Grain export important for world nutrition
According to diplomats, the fact that the EU will not just lift the sanctions against the agricultural bank has to do with the fact that there would probably not be the necessary consensus between the member states. However, opponents of such a move probably could not prevent a new subsidiary from using Swift.
Proponents of the measure point out that grain exports are very important not only for Ukraine, but also for recipient countries in Africa and Asia. In addition, they believe that Russia should be prevented from blaming the West for a possible failure of the agreement.
Ukrainian President Volodymyr Zelenskyy and German Chancellor Olaf Scholz had previously pushed for the agreement to be extended under UN supervision. Scholz also assured Selenskyj of “unbreakable solidarity” during a telephone conversation.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
