The EU is thinking about a plan to have the Russian Agricultural Bank establish a subsidiary so it can once again connect to the global financial network, as reported by the Financial Times.
The move is reportedly an attempt to protect the Black Sea grain deal, enabling Ukraine to export food to world markets despite the bank being under sanctions.
Though it guaranteed poor countries that grain exports would keep going, Russia said last week that there was no reason to extend the grain deal beyond July 17 due to the West’s outrageous behavior over the agreement.
According to the paper, Moscow proposed a plan through U.N.-mediated talks that would allow the bank unit to manage payments related to grain exports, and the new unit would be permitted to use SWIFT, which was unavailable to Russia’s largest banks after Russia’s invasion of Ukraine.
Both Russia and Ukraine are important players in the global grain and oilseed markets due to their status as two of the world’s top agricultural producers. Russia also dominates the market for fertilizer.
