The European Union is considering reconnecting a Russian bank with the

The European Union is considering reconnecting a Russian bank with the "Swift" system

Nov 29 2022

ARK News… The European Union is studying the possibility of lifting sanctions on the Russian Agricultural Bank "Russ Solkhoz Bank" and re-linking it to the SWIFT financial transfer system within the framework of the grain deal.

Izvestia newspaper on Monday, wrote quoting a spokesperson for the EU's High Representative for Foreign Affairs and Security Policy Peter Stano: "We have noted Russian demands regarding the role of the Russian agricultural bank Russ Solkhoz Bank in transactions related to food and agriculture, as well as the perceived difficulties arising from its break-up with SWIFT." Although this makes transactions more expensive and slower, payment is still possible.

The European official pointed out that any amendment to the EU measures must be unanimously adopted by the member states of the Council, and the EU provides measures for an exemption from sanctions to allow EU operators to deal with affected Russian banks.

"A sufficient number of payment channels remain open, given that most Russian banks are not subject to sanctions and are not separate from SWIFT, including major financial institutions such as Gazprom Bank," he added.

In turn, the head of the Russian Grain Union, Arcady Zlochevsky, told Izvestia: "Russ Solkhoz Bank plays a big role for local agricultural companies, but transactions through other banks are difficult because of the sanctions."

"We do not receive or make any payments through the Russian Agricultural Bank. We work mainly through international intermediary banks, for example, Turkish banks," he added.

"But recently these banks have also been afraid of secondary sanctions, which makes it very difficult for Russian agricultural companies to operate and make contracts," he added.

Source: TASS agency