The EU may allow Rosselkhozbank's subsidiary to connect to SWIFT

The EU is considering connecting a subsidiary of Rosselkhozbank to SWIFT to get Russia to agree to extend the grain deal. 

The Financial Times reports this, citing its sources.

Russia has proposed to create a subsidiary of Rosselkhozbank through which payments for grain exports will be made. This organisation will be allowed to use the SWIFT global financial transaction system. This idea was voiced by Russian representatives during negotiations mediated by the United Nations. 

Last week, this issue was discussed in the EU during a summit in Brussels as a potential means of persuading Russia to extend the Black Sea Agreement after its expiration on July 17.

Earlier, Russia threatened that it would not extend the Black Sea Agreement after July 17. 

Proponents of this idea considered it the "worst option" to gain Vladimir Putin's support for the agreement's extension. 

The newspaper writes that unnamed officials say that Russia's threats to terminate the agreement this time were more serious than during previous extension talks.

Rosselkhozbank is fully controlled by the Kremlin, with its former CEO, Dmitry Patrushev, being the current Minister of Agriculture and the son of Nikolai Patrushev, a Putin aide and secretary of Russia's Security Council who played an important role in launching the war against Ukraine.