A U.S.-brokered agreement between Russia and Ukraine to end the use of force in the Black Sea was reportedly announced by the Trump administration, which also said it committed to assist Russia in increasing its exports of grain and fertilizer to international markets.
The White House announced on Tuesday that it will also improve access to ports and payment systems for these kinds of transactions, as well as assist in reducing the cost of maritime insurance in Russia.
Such adjustments would speed up Moscow’s market access, but they are contingent upon the European nations who have maintained the limitations due to the conflict removing some of their sanctions.
Ukraine made it clear that it did not support the easing of sanctions.
According to the Kremlin, the easing of sanctions on significant Russian banks engaged in the trading of fertilizer and food was a need for its adherence to the Black Sea deal.
While mentioning Rosselkhozbank, a state-owned bank that works with Russian agribusiness, Moscow’s statement on the agreement implied that limitations on other banks would also need to be lifted.
The statement also stated that the banks would need to be reconnected to the Swift payment network.
Western sanctions have never specifically targeted Russian grain or agricultural exports because to fears that they could increase food prices and hunger worldwide and because doing so is generally forbidden by international law.
However, Russia claims that the European banking and port restrictions had an impact on its agricultural exports.
Financial sanctions are the foundation of the Western sanctions framework, and the Kremlin has long called for their removal.
The European Union has consistently stated that payments to Russia for goods like fertilizer and grain that are allowed for commerce are excluded from its financial sanctions.
For example, Gazprombank, one of Russia’s biggest banks and a crucial payment gateway for Russian natural gas sales, is one of the institutions the EU chose not to censure.
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