A Ukrainian ship carrying wheat docked at the port of Djibouti on August 30, 2022. Photo: AFP/VNA

The EU is considering connecting a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) to the international payment network SWIFT to allow for grain and fertilizer transactions, sources familiar with discussions told Reuters on Wednesday.

UN Secretary-General Antonio Guterres on Wednesday proposed Russian President Vladimir Putin extend a deal allowing the safe Black Sea export of grain from Ukraine in return for connecting a subsidiary of Russia’s agricultural bank to the SWIFT international payment system.

The Black Sea grain initiative has been renewed three times. Under the most recent extension on May 18, the agreement will expire on July 17.

While Russia’s food and fertilizer exports are not subject to Western sanctions, Russia says restrictions on payments, logistics, and insurance have been hampering its exports.