Turkey announces discussion of Rosselkhozbank’s return to SWIFT

Discussions are underway to reconnect Rosselkhozbank to the SWIFT settlement system to extend the grain deal, Turkish Foreign Minister Mevlut Cavusoglu said on NTV.

“The main problem here and the reason why Russia extended the deal for 60 days is the obstacles to the export of Russian agricultural products… Work is underway here.. On the other hand, the issue of returning the Agricultural Bank to the SWIFT system is on the agenda, negotiations are underway on this account,” he said (quote according to RIA Novosti).

UN Secretary General António Guterres, the Turkish Foreign Ministry and President Recep Tayyip Erdogan are actively engaged in negotiations on the grain deal, the minister added.

The grain deal was extended in mid-March until May 18. On April 25, Russian Foreign Minister Sergei Lavrov said that the situation around the agreement had reached a dead end. The minister pointed to the unwillingness to remove obstacles to the export of Russian fertilizers, despite their shortage, and also to connect Rosselkhozbank to SWIFT. The Kremlin also called the prospects for extending the agreement “not very good.”

On April 13, the Russian Foreign Ministry formulated five conditions for extending Moscow’s participation in the agreement: reconnection of Rosselkhozbank to the SWIFT settlement system; the resumption of deliveries to Russia of agricultural machinery, spare parts and service, which fell under Western sanctions; abolition of restrictions on insurance and reinsurance of Russian grain ships and removal of the ban on their access to ports; restoration of the work of the ammonia pipeline Tolyatti – Odessa; unblocking foreign assets and accounts of Russian companies associated with the production and transportation of food and fertilizers.

The agreement on the export of grain was concluded on July 22, 2022 by representatives of Turkey and the UN on the one hand, and representatives of Russia and Ukraine on the other. Separate agreements were signed with Moscow and Kiev: the first was for the export of Ukrainian grain from three ports, including Odessa, Yuzhny and Chernomorsk, the second was for assistance in the export of Russian grain and fertilizers. Moscow has repeatedly noted that the second part of the deal is not being implemented.