The European Union is set to ease sanctions against key Russian banks as part of diplomatic efforts to restart Ukraine grain shipments from Black Sea ports.
The move is part of “tweaks” to its sixth package of measures that will unfreeze some funds of seven banks to allow for the “purchase, import or transport” of food and fertilisers, according to a draft seen by Reuters.
Russia has blockaded Ukrainian ports as part of its invasion of Ukraine, trapping about 50 non-Ukrainian ships over 10,000 dwt. They include a large number of Greek bulk carriers.
EU envoys are discussing the changes to the regime on Wednesday. The EU declined to comment beyond a statement on Friday that proposals clarify “the exact scope of some financial and economic sanctions”.
The International Grains Council (IGC) said 3m tonnes of grain needed to be shipped from Ukraine’s Black Sea ports in both July and August to clear storage space for this year’s harvest.
Prices are soaring because of concerns around supplies and shipping infrastructure. More than half a billion people live in countries that rely heavily on Russian and Ukrainian wheat, according to the Economist Intelligence Unit.
Russian President Vladimir Putin said on Tuesday there had been progress toward a deal but some issues needed to be resolved before the trade could resume.
He said Moscow would agree to a deal if the West lifted restrictions on Russian grain exports. The EU says it does not impose sanctions on food and blames Russian “disinformation” after facing criticism from some African countries that its measures were worsening food shortages.
“Not all the issues have been resolved yet, but it’s good that there has been some progress,” Putin said during a meeting with Turkish President Recep Tayyip Erdogan in Tehran.
Outstanding problems included the best ways to ensure the security of ports and ships bringing millions of tonnes of grain and other products out of waters mined since the start of Russia’s February invasion of Ukraine, according to the Financial Times. A deal could be reached in days but some unresolved issues could delay shipments for three weeks, it said citing unidentified people briefed on the talks.
Maria Bertzeletou, an analyst at Signal Group, said the resumption of seaborne grain flows could lead to stronger growth in dry bulk demand in the third quarter of this year and higher revenues.
