Russia says JPMorgan stops processing its grain funds

US financial institution JPMorgan (JPM.N) this week stopped processing funds for the Russian Agricultural Financial institution, Russia mentioned on Friday, because it demanded motion, not guarantees, from Washington to assist Russian grain and fertilizer attain world markets.

JPMorgan had dealt with some Russian grain export funds for the previous few months with reassurances from Washington. Nonetheless, that cooperation stopped this week, Russia’s Overseas Ministry mentioned on Friday.

“The direct channel between the Russian Agricultural Financial institution and JPMorgan … was closed on Aug. 2,” overseas ministry spokeswoman Maria Zakharova was quoted by Russian media as saying.

The United Nations, the US State Division and JPMorgan declined to remark.

Moscow had allowed the secure export of Ukraine grain by way of the Black Sea for the previous 12 months underneath a deal it give up on July 17. Russia has a listing of calls for it needs met earlier than it would return to the association.

Below a associated pact – additionally brokered in July 2022 – UN officers agreed to assist Russian meals and fertilizer exports attain world markets.

“As quickly as that is performed, this deal will instantly be renewed,” Kremlin spokesman Dmitry Peskov advised reporters on Friday.

A key Russian demand has been the reconnection of the Russian Agricultural Financial institution to the SWIFT worldwide funds system. It was reduce off by the European Union in June 2022 following Russia’s invasion of Ukraine.

Zakharov, the overseas ministry spokeswoman, mentioned the West and the United Nations “tried to current (fee processing by JPMorgan) as a working various to SWIFT.”

US Secretary of State Antony Blinken advised reporters on Thursday that Washington would proceed to do “no matter is important” to make sure Russia can freely export meals if the Black Sea grain deal was revived.

Whereas Russian exports of meals and fertilizer aren’t topic to Western sanctions imposed after Russia’s February 2022 invasion of Ukraine, Moscow has mentioned restrictions on funds, logistics and insurance coverage have hindered shipments.


Prime US State Division sanctions official James O’Brien mentioned on Friday that Russia wanted to be clear about what it was asking for and what constituted success, suggesting it needs to be how a lot meals and fertilizer reaches the world.

“It has put forth various completely different calls for and all of them having to do with numerous Russian establishments not getting providers from the non-public sector,” he advised reporters. “We now have made clear that we’re ready to assist on any of those issues.”

“Russia is exporting report quantities of grain,” O’Brien mentioned. “So if the measurement is meals for the globe … Russia’s complaints quantity to minor allegations a couple of system that’s working very effectively.”

Russia could export not less than 55 million tonnes of grain within the 2023/24 advertising and marketing season, barely lower than the estimated record-breaking 57 million tonnes within the 2022/23 season, Russia’s Grain Union mentioned final month.

Ukrainian exports for the 2022/23 season have been nearly 49 million tonnes, based on Agriculture Ministry knowledge. Practically 33 million tonnes of that was shipped underneath the Black Sea deal.

Western nations have accused Russia of utilizing meals as a weapon of battle by quitting the Black Sea deal, which had helped convey down world meals costs, after which finishing up repeated air strikes on Ukrainian ports and grain shops.

Russia has complained that not sufficient Ukrainian grain was attending to the poorest nations. The United Nations has argued that the deal helped everybody as a result of it introduced costs down 23 p.c from a report excessive within the weeks following Russia’s invasion.

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