Failure to fulfill grain deal terms will have long-term consequences for global food system, says Rosselkhozbank CEO
Quick Look
Rosselkhozbank CEO Boris Listov stated that unfulfilled terms of the grain deal, including the bank's reconnection to SWIFT and issues in the Strait of Hormuz affecting fertilizer supplies, are impacting global food markets and will have long-term consequences for the global food system, citing rising logistics and payment costs increasing food prices in 160 countries receiving Russian exports.
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Why It Matters
The grain deal refers to agreements discussed with Western partners regarding the export of Russian agricultural products, which included promises to lift sanctions on Rosselkhozbank and remove restrictions on ships entering ports. The Eastern Economic Forum is an annual event held in Vladivostok, organized by the Roscongress Foundation with Russian government support.
VLADIVOSTOK, September 3. /TASS/. Failure to fulfill the terms of the grain deal will have long-term consequences for the global food system, Russian Agricultural Bank (Rosselkhozbank) CEO Boris Listov told reporters on the sidelines of the Eastern Economic Forum (EEF).
"As you heard, the president noted yesterday that the terms of the grain deal discussed with Western partners were not fulfilled. This includes issues related to reconnecting Rosselkhozbank to SWIFT. The failure to fulfill the terms of the grain deal, as well as the situation around the Strait of Hormuz, which is affecting mineral fertilizer supplies, is having an impact on global food markets. Rising costs, including for logistics and payments, inevitably increase food prices for people in the 160 countries to which Russia exports its products. These factors, including restrictions on processing payments for food, will have long-term consequences for the global food system," Listov said.
According to him, Russian agricultural supplies are critically important for many countries, including key products such as grain, oils and other foodstuffs that are supplied to a significant extent by Russian exports. Listov noted that these figures could clearly have been significantly higher without sanctions restrictions and unresolved issues under the grain deal.
"Despite this, Russian farmers continue to meet their obligations to international partners, while Rosselkhozbank provides comprehensive support to export-oriented companies. Since the beginning of the year, we have allocated 541 bln rubles to finance agricultural exports, up 14.2% from last year," he concluded.
Russian President Vladimir Putin earlier said at the SCO summit in Kyrgyzstan that the measures promised by the West under the grain deal, including lifting sanctions on Rosselkhozbank and removing restrictions on ships entering ports, had never been implemented.
The Eastern Economic Forum is being held on September 1-4 in Vladivostok on the campus of Far Eastern Federal University. The forum is organized by the Roscongress Foundation with the support of the Russian government. TASS is the general information partner.
Open Questions
- Which specific Western partners are involved in the grain deal discussions?
- What exact measures were promised under the grain deal regarding SWIFT access and port access?
- How are the disruptions in the Strait of Hormuz specifically affecting mineral fertilizer supplies?
- What is the timeline for potential resolution of the unresolved issues under the grain deal?
