Russia says window to extend Black Sea grain deal is shrinking

MOSCOW (Reuters): The Kremlin said on Tuesday that the window to extend the Black Sea grain deal was shrinking, and that talks between the parties were continuing, but without any results.

Russia has repeatedly indicated it is prepared to walk away from the deal on May 18 if its demands to ease restrictions on its own agricultural exports are not addressed.

Kremlin spokesman Dmitry Peskov told reporters on Tuesday that part of the deal concerning Russia’s interests was not being implemented, but dialogue was continuing.

“Russia’s position is well known – the deal was extended for two months.” Peskov said. “The terms of the deal that concern Russia’s agricultural sector are not being fulfilled.”

Peskov also said he was not able to say in what format, time and place negotiations would continue, after a Ukrainian source told Reuters that the parties to the deal would meet on Wednesday.

“Contacts are continuing, but so far they have not brought any results,” he said.

Among other requests, Russia says it wants its state-run agriculture bank, Rosselkhozbank, to be reconnected to the SWIFT international financial messaging system, and for the Togliatti-Odessa ammonia pipeline to be restarted.

The West says its sanctions do not explicitly target Russia’s agricultural sector, but Moscow says its agricultural exports have been hit by restrictions on its banks as well as other sanctions on logistics and insurance.