Russia, the world’s top wheat and fertilizer exporter, said on Tuesday that Western sanctions on farm and shipping-linked companies need to be removed as a condition for joining a Black Sea maritime security agreement.
The deal was signed in Riyadh during negotiations on Monday, in which the US committed to assist in restoring Russia’s access to international agricultural and fertilizer markets. Moscow demanded that easing restrictions on Rosselkhozbank, the government-run agriculture bank, and restoring its access to the SWIFT financial system were a prerequisite for the deal’s implementation. Russia had used these sanctions as the main justification for its withdrawal from the 2022 Black Sea Initiative last year.
Russia Increases Agricultural and Fertilizer Exports
Russia anticipates exporting about 40 million tons of wheat this year, mainly to major customers in the Middle East like Egypt. Russia also plans to boost its total agricultural exports by 50% by 2030. Russia also exported about 40 million tons of mineral fertilizers in the previous year, with Brazil, India, China, and the US being among its biggest buyers. The Kremlin is also set to increase fertilizer output by a third to 80 million tons by 2030.
Despite Russia’s ongoing exports to “friendly” countries, trading companies have complained about payment issues and shipping bans as a result of global sanctions. The Kremlin called on the lifting of limits on trade financing, insurance companies, and ships carrying foodstuffs and fertilizers in order to provide stability in international markets.
Temporary Energy Truce Reached
In addition to trade negotiations, Russia and the US also agreed on a 30-day ceasefire in strikes against Russian and Ukrainian energy facilities from March 18. Russian fertilizer behemoth Phosagro meanwhile rose by 5.18% in shares after news broke of the US commitment to restoring the market access of Russia, the Moscow Stock Exchange data showed.
