UN proposes to return Russian bank to SWIFT in exchange for extension of "grain deal"

This is said in a UN statement.

The grain deal expires on July 17, and Russia threatens not to extend it, saying that there are no grounds for extending the grain deal. Yet the UN and Turkey are negotiating with Russia and trying to agree on an extension.

“The objective is to remove hurdles affecting financial transactions through the Russian Agricultural Bank, a major concern expressed by the Russian Federation, and simultaneously allow for the continued flow of Ukrainian grain through the Black Sea,” Guterres called these conditions.

It is worth noting that Rosselkhozbank's return to the SWIFT banking system is one of the main requirements of the Russian Federation for the resumption of the grain deal. The Russian bank was disconnected from it by the European Union in June 2022.

What is known about the "grain deal"

The agreement, known as the Black Sea Grain Initiative, was concluded separately between Russia and the UN and Ukraine and the UN with Turkish mediation in July 2022 in Istanbul. It has since been extended several times.

In January, the Ministry of Infrastructure said that as a result of Russian actions in the Bosphorus, the world loses millions of tons of Ukrainian food every month. The occupiers are hampering the inspection of ships that export grain to third world countries.

In March 2023, the Russian Federation informed the parties to the agreement to extend the agreement for only 60 days instead of 120. The agreement was due to expire on May 18.

To extend it, the occupiers demanded

• reconnecting Rosselkhozbank to SWIFT

• resumption of supply of agricultural machinery, spare parts and service

• lifting restrictions on insurance and reinsurance plus lifting the ban on access to ports

• resumption of the Togliatti-Odesa ammonia pipeline

• unblocking foreign assets and accounts of Russian companies related to the production and transportation of food and fertilizers.

On May 17, the grain deal was extended for 60 days. The Russians' demands were not met.

On June 5, the Russian Federation said it saw no prospects for extending the agreement in July, and on June 22, the Ukrainian Foreign Ministry said it did not see the Russians' readiness to continue the grain initiative. Doubts about the continuation of the grain deal were also voiced in the UK on July 4.

On July 5, the UN announced its readiness to send a representative to Moscow to "save the grain deal."

Turkish President Recep Tayyip Erdogan said on July 8 that his country was working on extending the grain deal for two years.

On July 12, Erdogan said he had received proposals from Putin to extend the grain deal.