Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Russia sticks to demands on Black Sea grain deal, rejects UN bank proposal

Published 09/09/2023, 10:58
Updated 09/09/2023, 13:46
© Reuters. FILE PHOTO-Kremlin spokesman Dmitry Peskov speaks during the annual end-of-year news conference of Russian President Vladimir Putin in Moscow, Russia December 19, 2019. Picture taken December 19, 2019. Sputnik/Alexei Nikolsky/Kremlin via REUTERS/File Phot

(Reuters) -Russia said on Saturday it was sticking to its conditions for a return to the Black Sea grain deal which it quit in July.

In particular, Kremlin spokesman Dmitry Peskov said Russia needed its state agricultural bank - and not a subsidiary of the bank, as proposed by the United Nations - to be reconnected to the international SWIFT bank payments system.

"All our conditions are perfectly well known. They do not need interpretation, they are absolutely concrete and all this is absolutely achievable," Peskov said.

"Therefore Russia maintains its responsible, clear and consistent position, which has been repeatedly voiced by the president."

The Black Sea deal was brokered by Turkey and the United Nations in July 2022 to enable Ukraine to export grain by sea despite the war and help ease a global food crisis.

It was accompanied by an agreement to facilitate Russia's own exports of food and fertiliser, which Moscow says has not been fulfilled. Since quitting the grain deal, Russia has repeatedly bombed Ukrainian ports and grain stores, prompting Kyiv and the West to accuse it of using food as a weapon.

Moscow's uncompromising restatement of its position came five days after President Vladimir Putin met his Turkish counterpart Tayyip Erdogan and discussed the grain issue.

Russia appears to have drawn encouragement from Erdogan's statement at that meeting that Ukraine should "soften its approaches" in talks over reviving the deal, and export more grain to Africa rather than Europe. Ukraine said it would not alter its stand and would not be hostage to "Russian blackmail".

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

BANKING ISSUE

Russia says its grain and fertiliser exports, though not specifically sanctioned by the West, face barriers in practice because of sanctions affecting port access, insurance, logistics and payments - including the removal of agricultural bank Rosselkhozbank from SWIFT.

The U.N. has proposed that a Luxembourg-based subsidiary of Rosselkhozbank could immediately apply to SWIFT to "effectively enable access" for the bank within 30 days.

"The agreements say that SWIFT should be open to Rosselkhozbank, and not to its subsidiary. That is, we are talking about the need to return to the basics, to the agreements that were in place originally and which we were promised would be fulfilled," Peskov said.

"The president clearly said that the moment they are fulfilled, then the deal will immediately resume. But not vice versa," he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.