JPMorgan stops processing payments for Russian grain exports

The American bank JPMorgan has stopped processing payments for Rosselkhozbank, which is under US and EU sanctions, Reuters reports, citing the Russian Foreign Ministry.

It is noted that over the past few months, JPMorgan has processed some Russian export payments for grain, receiving assurances from Washington.

The Russian side claims that the direct channel between Rosselkhozbank and JPMorgan was closed on August 2.

Restoring Rosselkhozbank’s connection to the SWIFT international payment system was one of Russia’s demands for the continuation of the grain deal.

As part of a related pact, also concluded in July 2022, UN officials agreed to help Russian food and fertilizer exports reach global markets.

Also, Russian Foreign Ministry spokeswoman Maria Zakharova said that the West and the UN “tried to present (JPMorgan’s payment processing) as a working alternative to SWIFT.”

In contrast, US Secretary of State Anthony Blinken told reporters that Washington would continue to do “everything necessary” to ensure that Russia could freely export food if the grain deal is restored.

Although Russian food and fertilizer exports are not subject to Western sanctions imposed after Russia’s invasion of Ukraine in February 2022, Moscow has said that restrictions on payments, logistics and insurance are hampering shipments.

As reported earlier, the United States allowed the American bank JPMorgan Chase & Co to process payments for Russia’s Rosselkhozbank.

However, Russian Foreign Minister Sergei Lavrov said that this does not suit Russia and Moscow demands that Rosselkhozbank be reconnected to the SWIFT system as a condition for the continuation of the grain deal.

Tags: sanctions, Russia, grain