The EU can connect a subsidiary of Rossilkhozbank to SWIFT to save the Grain Agreement

Photo: Reuters.

The countries of the European Union are discussing the possibility of connecting the subsidiary structure of Rossilhospbank to the international SWIFT system.

In the course of negotiations with the participation of UN representatives, the idea of creating a “subsidiary” of Rossilhospbank, which will be connected to SWIFT and through which payments for grain exports will be made, was reported by Reuters with reference to the FT.

The EU believes that such a step should ensure Russia’s consent to the continuation of the Grain Agreement, under which Ukrainian grain is exported from the three ports of Great Odesa.

Rossilhospbank, like many other Russian credit institutions, was disconnected from SWIFT due to Western sanctions. The authorities of the Russian Federation have repeatedly stated that the reconnection of Rossilhospbank to this system is a condition for the continuation of the Grain Agreement.

Sources told the FT that the plan was discussed at a summit in Brussels at the end of June and described it as the “least worst option”. In addition, the informants noted that Russia’s threats to block the Zern Agreement this time are more serious than before.

We will remind you that Russia completely stopped the registration of new vessels entering Ukrainian ports within the framework of the Grain Initiative.

Currently, 29 ships with 1.4 million tons of Ukrainian food destined for Asian and African countries are blocked in Turkish waters. In general, only 2 million tons of agricultural products were exported from the ports of Greater Odessa in June.