Kremlin: Black Sea Truce Contingent on Lifting Sanctions on Russian Agribusiness and Banks

Russia has agreed to a Black Sea ceasefire, according to a statement released by the Kremlin on March 25 following negotiations in Riyadh, under the condition that sanctions are lifted from the Russian Agricultural Bank (Rosselkhozbank) and domestic producers of food and fertilizers.

The announcement echoes a parallel statement from the White House, which confirmed that the United States had reached separate agreements with both Russia and Ukraine to implement a maritime ceasefire in the Black Sea and to develop mechanisms aimed at preventing attacks on energy infrastructure.

The Kremlin specified that the ceasefire would not come into effect until sanctions are lifted from financial institutions involved in international food and fertilizer trade, as well as from producers, exporters, and Russian-flagged vessels engaged in transporting these goods.

Russia’s demands include the restoration of Rosselkhozbank’s access to the SWIFT  payment system, the reopening of correspondent accounts, the removal of restrictions on trade financing and cargo insurance, and the resumption of port services for Russian vessels. Moscow also called for the lifting of import restrictions on agricultural machinery and related products.

Additionally, Russia and the United States agreed to establish a verification mechanism to ensure that commercial vessels in the Black Sea are not being used for military purposes. The temporary ban on strikes targeting energy infrastructure is set to last for 30 days, beginning March 18 and may be terminated if either party violates the terms, according to Kremlin.

Earlier, President Volodymyr Zelenskyy confirmed that a 30-day ceasefire in the Black Sea and a mutual ban on strikes against energy infrastructure took effect on March 25, following negotiations involving Ukraine, the US, and Russia in Saudi Arabia.