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Russia wants the West to ease restrictions on state agriculture lender Rosselkhozbank to facilitate Russian grain exports, according to four sources familiar with the request, made during talks to extend a deal on food shipments from Ukraine.

Moscow suspended its participation in the secure Black Sea grain corridor in late October but rejoined after four days, easing fears of further disruptions to grain exports from key supplier Ukraine at a time of rampant global food inflation.

This would allow the bank, which has not had a major role in the international grain trade so far, to process payments for Russian grain and other foodstuffs, two of the sources added. Before the latest sanctions, such payments were handled by international banks and subsidiaries of other Russian banks in Switzerland.

Ukraine, whose shipments to global markets were blocked by the conflict and Russia’s control of Black Sea waters until July, is one of the biggest suppliers of grains, oilseeds and vegetable oils. Swiss banks which traditionally handled the trade have kept their distance since the latest Western sanctions were imposed after Russia invaded Ukraine in February. Before the Ukraine crisis, Rosselkhozbank mainly provided loans to Russian farmers.

 

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