US starts notifying banks of Russian fertilizer export permits

The United States has begun notifying US and foreign banks that Russian food and fertilizer exports and transactions are not under sanctions. This was announced at a briefing by the HEAD of the Department of Sanctions Coordination Jim O'Brien.

“We regularly communicate with US and foreign banks, explaining to them our position, which is that we do not impose sanctions on Russian food and fertilizer or food and fertilizer transactions,” he said ( quoted by TASS ).

Earlier, the Russian Foreign Ministry called the lifting of restrictions on the supply of Russian fertilizers one of the conditions for extending the grain deal.

The United States excluded Russian fertilizers, food and medicine from sanctions in July 2022. However, as the head of the Ministry of Agriculture Dmitry Patrushev said in an interview with RBC, Western countries only declare the absence of restrictions on the EXPORT of agricultural products from Russia, while maintaining "hidden sanctions" against the Russian agricultural sector.

The grain deal, which Russia and Ukraine negotiated separately with Turkey and the UN last summer, includes two parts: one for the export of Ukrainian agricultural products, the other for the removal of restrictions on the export of similar Russian agricultural products, as well as fertilizers. The last time the grain deal was extended in mid-March, Russia agreed to do it only for 60 days, that is, until May 18.

The Kremlin said that the second part of the agreement was not being implemented, and the prospect of extending the deal was called "not very good." The Russian Foreign Ministry listed five "systemic problems" without which the extension of the deal would be impossible. Among them are the reconnection of Rosselkhozbank to the SWIFT system, the restoration of the operation of the Togliatti-Odessa ammonia pipeline, the resumption of supplies of agricultural machinery to Russia and the unblocking of foreign assets of Russian companies related to production.

On May 10, a TASS source said that, despite the differences, the parties agreed to extend the grain deal after May 18. According to the interlocutor of the agency, "there are expectations that the export of Russian products will be included in it." A day later, the Foreign Ministry said that if the parties fail to reach a consensus on the grain deal by May 18, it will cease to exist.