Kremlin: Putin and Ramaphosa Discuss Grain Export Agreement

The Kremlin said on Saturday that Russian President Vladimir Putin had a telephone conversation with South African President Cyril Ramaphosa during which the two leaders discussed an agreement to export grain across the Black Sea and an African peace initiative for Ukraine.

Regarding the grain deal, which expires on Monday, Putin assured Ramaphosa that commitments to remove barriers to Russian food and fertilizer exports have not yet been met, the Kremlin said.

On Thursday, a European Union official said the European Commission was assisting the UN and Turkey in efforts to renew an agreement allowing Ukrainian grain exports from Black Sea ports, which could expire next Monday, adding that the bloc was open to “exploring all solutions.”

EU Considers Joining Rosselkhozbank to SWIFT Network for Grain Transactions

Sources familiar with the negotiations told Reuters that the European Union is considering joining a subsidiary of Rosselkhozbank to the SWIFT international payment network to allow transactions in grain and fertilizers.

Two sources told Reuters that UN Secretary-General António Guterres, in a letter to Russian President Vladimir Putin, suggested that Moscow allow the Black Sea grain deal for a few months to give the European Union time to connect the Rosselkhozbank subsidiary to the SWIFT system.

Guterres told reporters during a visit to Brussels on Thursday that he has yet to receive a response from Russia. He said his letter to Putin contained “concrete proposals that I hope will enable us to find a positive path forward.”

EU Calls for Extending Black Sea Agreement

The EU representative in Brussels said on Thursday that the European Commission’s priority is to ensure access for Ukrainian grain to the world market, and that the Commission calls on all parties to extend the Black Sea agreement.

“We are assisting negotiations under the auspices of the UN and Turkey as needed,” the EU official said. “We are, of course, open to exploring all solutions that contribute to our goal, while continuing to ensure that Russia’s ability to wage war in Ukraine is limited, hindered as much as possible.”

Russia’s Demands and Threat to Pull Out of Grain Deal

One of Moscow’s main demands is to restore the connection of Rosselkhozbank to the SWIFT system. This link was severed by the European Union in June 2022 following the Russian invasion of Ukraine in February 2022.

Russia has threatened to pull out of the grain deal because many of its demands to export its grain and fertilizer abroad have not been met. The last ship to sail under the Black Sea deal is currently loading at the Ukrainian port of Odessa before the deal’s deadline on Monday.

UN-Turkey Brokered Black Sea Grain Initiative

In July 2022, the United Nations and Turkey brokered a Black Sea Grain Initiative between Russia and Ukraine to help alleviate the effects of a global food crisis exacerbated by Moscow’s invasion and blockade of Ukrainian ports.

To persuade Russia to agree to a Black Sea deal, a three-year memorandum of understanding was negotiated in which UN officials agreed to help Russia bring food and fertilizer exports to foreign markets.

Russian exports of food and fertilizer are not subject to Western sanctions imposed after the invasion of Ukraine, and Moscow says restrictions on payments, logistics, and insurance hinder exports.

As a workaround for the lack of access to SWIFT, UN officials turned to US bank JPMorgan with assurances from the US government to begin processing some payments for Russian grain exports.