EU considers concessions to Russian bank for the sake of "grain deal"

The European Union is considering a proposal to create a subsidiary of the sanctioned Rosselkhozbank to restore its connection to the global financial network as a concession to Moscow in order to preserve the grain deal.

This was reported by the Financial Times on Monday.

Last week, Russia said it saw no reason to extend the grain deal after July 17, accusing the West of "outrageous" actions regarding the agreement.

At the UN-mediated talks, Moscow proposed a plan that would allow a subsidiary of Rosselkhozbank to make payments related to grain exports, the newspaper writes, citing sources.

The new banking unit will be allowed to use the SWIFT global financial system, which was closed to Russia's largest banks after the invasion of Ukraine last year.

In addition to restoring access to SWIFT, Russia is also seeking to resume the supply of agricultural machinery and spare parts, as well as to lift restrictions on insurance and reinsurance.

Author - Olena Madiak, 03/07/2023