SOYB - UN proposes adding Russian bank unit to SWIFT if Putin extends Black Sea grain deal
2023-07-13 04:52:32 ET
U.N. Secretary-General Antonio Guterres has proposed that Russian President Vladimir Putin extend the Black Sea grain deal in return for adding a Russian agricultural bank's unit to the SWIFT payment network, Reuters reported citing sources.
The deal, which allows Ukraine to export grain through the Black Sea, is set to expire Monday. The deal was brokered by the U.N. and Turkey last July and has been extended three times.
Russia has threatened to back out of the deal, blaming the West for blocking its exports as a result of restrictions on payments, logistics and insurance.
Moscow earlier called for the reconnection of Russian agricultural bank Rosselkhozbank to the SWIFT system, which was cut off by the European Union last year over Russia's invasion of Ukraine.
The EU is now considering adding a Rosselkhozbank unit to the payment network to allow for grain and fertilizer-related transactions. Guterres proposed that Putin extend the Black Sea grain deal for several months, which would give the EU enough time to connect the unit to SWIFT.
"The objective is to remove hurdles affecting financial transactions through the Russian Agricultural Bank and simultaneously allow for the continued flow of Ukrainian grain through the Black Sea," said U.N. spokesman Stephane Dujarric.
The last two ships traveling under the Black Sea deal are reportedly loading cargoes at the Ukrainian port of Odesa ahead of the deadline.
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UN proposes adding Russian bank unit to SWIFT if Putin extends Black Sea grain deal