The EU could allow a subsidiary of Russian Agricultural Bank (RosSelkhozBank, RAB) to have a SWIFT ban waiver for grain export deals, the Financial Times reported citing unnamed sources.

bne IntelliNews already suggested in 2022 that sanctions and re-inclusion into SWIFT of RAB are likely to become a grain exports deal bargaining chip. Notably, in a similar way Gazprombank, affiliated with Russian natural gas giant Gazprom, has also avoided major sanctions thanks to its central role in payments for Russia’s hydrocarbon exports.

The plan was reportedly proposed by Moscow through negotiations brokered by the UN and was discussed by EU leaders at a summit in Brussels last week. The move is seen as a carrot to convince Moscow to extend the Black Sea agreement beyond its July 17 expiry deadline.

The sources told the Financial Times that a SWIFT waiver for RAB is seen as “the least worst option” to convince Russia to extend the grain deal, as Russia’s threats to terminate it “appeared more serious this time than during previous extension negotiations”.

In June President Vladimir Putin warned of withdrawing from the Black Sea grain deal due to the "failure of the West to fulfil its promises of facilitating the export of Russian agricultural goods to global markets".

The Financial Times notes that the readiness to grant the SWIFT access to fully-owned Russian state bank RAB “underscores the extent to which Western governments are desperate to preserve the grain export agreement, which is also a financial lifeline for Ukraine given its vast agricultural sector”.

The former CEO of the bank is Dmitry Patrushev, the current agriculture minister and the son of Nikolai Patrushev, a Vladimir Putin aide and secretary of Russia’s Security Council who has been one of the “hawks” reportedly promoting the full-scale military invasion of Ukraine.