United Nations’ Secretary-General Antonio Guterres sent a letter to Russian President Vladimir Putin offering compromise in exchange for Black Sea Grain Initiative extension.
In particular, according to Reuters, the Secretary-General proposed that the Black Sea Grain Initiative be extended in exchange for Russia’s agricultural bank joining the SWIFT international payment system.
The reconnection of the Russian agricultural bank Rosselkhozbank to the SWIFT international payment network is a recurring request by Russia. Last week, Kremlin representative Dmitry Peskov stated that Russia’s terms are still not met and no further movements can be made before they are. However, major shortages will affect global trade unless international forces convince Moscow to extend the Black Sea agreement beyond its July 17 expiry date.
The Initiative’s initial duration was for 120 days starting on 22 July 2022. It was renewed by all parties on 18 November for another 120 days. On 17 March, all parties agreed to its renewal, but Russia only agreed to a 60-day extension pending review. On 18 May, Russia confirmed its participation in the deal for another 60 days. As a result, the agreement is now set for renewal on 17 July.
According to two sources involved with the conversations, Guterres has offered to Putin that Russia extend the Black Sea grain contract for several months to provide the EU time to connect a Rosselkhozbank subsidiary to SWIFT, Reuters reports.
Meanwhile, the United Nations is also collaborating with the African Export-Import Bank (Afreximbank) to develop a platform to help execute transactions for Russian grain and fertiliser exports to Africa, the top U.N. trade official told Reuters last month.
