Despite the fact that EU is considering a proposal to allow a Russian bank under sanctions to carve-out a subsidiary that would reconnect to the global financial network, a Kremlin spokesperson announced that Russia likely won’t renew the Black Sea Grain Initiative.
Kremlin representative Dmitry Peskov stated that Russia’s terms are still not met and no further movements can be made before they are. According to Reuters, to fulfil the memorandum, Russia says several conditions must be met, including the readmission of the Russian Agricultural Bank (Rosselkhozbank) to the Belgian-based international banking payment system, SWIFT.
The high expense of insuring the ships could be a significant issue. Ships crossing the Black Sea must already be insured for thousands of dollars. Shipping companies may be hesitant to deploy their ships across the combat zone if Russian consent is not obtained, Deutsche Welle reports.
Alas, in mid-June The Cabinet of Ministers of Ukraine approved a Procedure to award compensation to the shipowner who has been denied compensation in writing by the insurer for damage caused by the armed aggression of the Russian Federation.
The continuation of the Black Sea Grain Initiative is critical for global food security. Major shortages will affect global trade unless international forces convince Moscow to extend the Black Sea agreement beyond its July 17 expiry date.
