EU Amending Sanctions vs Russian Banks To Allow Food, Fertilizer Exports

On July 20, the European Union (EU) will unfreeze some cash held by leading Russian banks in order to facilitate global food and fertilizer trade, according to Reuters, citing a draft agreement. VTB Bank, Sovcombank, Novikombank, Otkritie FC Bank, VEB, Promsvyazbank, and Bank Rossiya are among the banks affected.

Photo Insert: VTB Bank, Sovcombank, Novikombank, Otkritie FC Bank, VEB, Promsvyazbank, and Bank Rossiya are among the banks affected.

According to the Kyiv Independent, new, separate sanctions will be announced on July 20 that will freeze Sberbank's assets except for those essential for food commerce.

The decision came amid mounting concern from African leaders about the damaging impacts of sanctions on global trade, which have been worsened by Russia's assault on Ukraine and blockade of Ukrainian ports.

According to Reuters, Russia will reopen the Nord Stream 1 gas pipeline on July 21. After routine maintenance is finished, Russian gas flows through the Nord Stream 1 pipeline will restart.

On July 11, the pipeline, which accounts for more than a third of Russian natural gas shipments to the EU, was shut down for ten days for maintenance. Critics saw the move as part of Russia's efforts to blackmail and coerce the EU.

Dmytro Kuleba, Ukraine's Foreign Minister, stated on July 19 that negotiations on the sale of grain halted at Ukrainian ports due to Russian aggression are "advanced." Kuleba, on the other hand, stated that "everything can fall apart at any moment."

Earlier that day, in Tehran, Russian president Vladimir Putin met with Turkish President Recep Tayyip Erdogan. Putin reportedly stated that if limitations on Russian grain supply are lifted, Russia will assist in the export of Ukrainian grain.

On July 19, the United States Agency for International Development (USAID) established a $100 million Ukraine Agriculture Resilience Initiative fund to "bolster Ukrainian agricultural exports" and defend against the global food security crisis.

The fund will assist Ukrainian farmers by increasing access to vital agricultural inputs and strengthening infrastructure for agricultural export, storage, and processing. USAID intends to fund the effort with an additional $150 million.

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