Russia, the world's leading exporter of wheat and fertilizer, stated that Western sanctions against companies involved in food and fertilizer exports, as well as shipping, must be lifted as a prerequisite for a Black Sea maritime security agreement.
This deal was established during talks in Riyadh. The U.S. is expected to restore Russia’s access to global agricultural and fertilizer markets.
Russia plans to export approximately 40 million tons of wheat this season, primarily to traditional customers in the Middle East, such as Egypt, and aims to increase its overall agriculture exports by 50% by 2030.
Last year, Russia also exported around 40 million tons of mineral fertilizers, with major buyers including Brazil, India, China, and the U.S. The country seeks to enhance fertilizer production by one-third to around 80 million tons by 2030.
The Kremlin indicated that executing both components of the agreement would necessitate lifting sanctions against Rosselkhozbank, which services agricultural firms, and restoring the bank's access to the SWIFT international messaging system.
Sanctions affecting Rosselkhozbank contributed to Russia's withdrawal from the previous Black Sea Initiative in 2023, which had been established in 2022 with support from Turkey and the United Nations.
While Russian food exports continue to reach global markets, particularly in countries considered "friendly," trading firms have reported challenges with international payments and vessel restrictions.
The Kremlin emphasized that sanctions on Russian food and fertilizer exporters, insurance companies servicing these shipments, and restrictions on vessels and trade financing must also be lifted.
"We want the grain and fertilizer market to be predictable, so that no one tries to 'dissuade' us from it," asserted Russia's Foreign Minister Sergei Lavrov.
Shares in Russia's major fertilizer producer Phosagro rose by 5.18% following news of the U.S. commitment to restore Russia’s access to the world market, according to data from the Moscow Stock Exchange.
Additionally, Russia and the United States have agreed to implement measures to halt strikes for a period of 30 days beginning March 18.