US authorities have allowed JPMorgan Chase to execute payments to Russian agriculture bank Rosselkhozbank to remove obstacles to Russian grain exports, a person familiar with the situation told AFP Wednesday.
Officials with the US State and Treasury departments sought to enlist the bank ahead of the first harvests in order to facilitate deliveries to countries that need the food, according to this person.
The payments are limited and follow a very strict process, with JPMorgan determining the exact counterparties in the transactions.
The bank was assured that it would not be punished for violating sanctions on Russia.
JPMorgan declined comment.
Moscow has been under strict sanctions by western powers since early 2022 when Russia invaded Ukraine.
Russia has demanded that it be restored to the Swift international banking system as a condition of extending the so-called Black Sea Grain Initiative, which is set to expire May 18.
Under the initiative, designed to alleviate a global food crisis, the UN agreed to help remove obstacles to Russia’s grain and fertilizer exports and permit Ukrainian grain to reach world markets.
Russia is the world’s top wheat exporter. Ukraine is the world’s fifth largest wheat exporter.
