Putin hints at potential withdrawal from Black Sea grain deal

Russian President Vladimir Putin has indicated at a potential withdrawal from the Ukrainian grain deal in case Moscow's demands are not met. Black Sea Grain Initiative is a deal that allows the export of Ukrainian grain via the Black Sea. In a reiteration of Russia's tough stance, Putin said that Russia will withdraw from the deal unless its demands are met before the deal's expiration on Monday.

Putin expressed dissatisfaction with the United Nations' handling of the issue and denied receiving any proposals from the UNSecretary-General.

Putin's statement on possible suspension

Speaking to state television, Putin stressed that Russia has the option to suspend its participation in the grain deal. He mentioned that if the promises made to Russia are fulfilled, Russia would immediately rejoin the agreement.

"We can suspend our participation in the deal, and if everyone once again says that all the promises made to us will be fulfilled, then let them fulfill this promise. We will immediately rejoin this deal," Putin said.

However, a Kremlin spokesperson later clarified that a final decision on whether to exit the grain deal has not been made.

Black Sea grain initiative

The initiative was brokered by the United Nations and Turkey in July 2022, aiming to address the global food crisis exacerbated by Russia's military actions in Ukraine and the blockade of Ukrainian ports.

As part of the deal, the UN officials also agreed to assist Russia in exporting its food and fertiliser to foreign markets. However, Russia claims that the UN has failed to fulfill this commitment.

Although Russian food and fertiliser exports are not subject to Western sanctions related to Russia's war in Ukraine, Moscow asserts that restrictions on payments, logistics, and insurance have created significant barriers to shipments.

Proposed solution and Putin's response

According to sources cited by Reuters, UN Secretary-General António Guterres has proposed to Putin that he extend the Black Sea grain export deal with Ukraine, and in exchange Russia would be given a greenlight to connect a subsidiary of its agricultural bank to the SWIFT international payment system.One of Moscow's key demands is the reconnection of the Russian agricultural bank, Rosselkhozbank, to the SWIFT network.

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The EU had cut off the bank's access in June 2022 following Russia's invasion of Ukraine. However, the EU spokesperson stated in May that there were no plans to reinstate Russian banks.

However, Putin stated that he had not received any such message from Guterres

As of 12th July, the last two ships under the agreement were loading cargoes in the Ukrainian port of Odesa before the deadline.

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