The European Union is weighing a proposal that would permit the Russian Federation to establish a so‑called “daughter” entity capable of joining the SWIFT international payment network. The aim is to broaden the grain deal involving the sanctioned Agricultural Bank of Russia and keep some flow of agricultural shipments moving amid ongoing sanctions. Multiple newspapers reported this possibility, including Financial Times, which cited anonymous sources close to the negotiations.
Sources with access to the talks indicate that Russia advanced this plan during discussions led by the United Nations as mediator. The framing among some diplomats and broadcasters was that the proposal represented a narrow option that could prevent broader disruption while avoiding a total collapse of the current arrangement. In conversations with channels tracking the talks, observers described the move as a compromise of sorts, a minority choice viewed by some as the least damaging among a set of unfavorable options.
The Financial Times has noted that EU policymakers are actively evaluating the legal and practical feasibility of any such modification. Questions on jurisdiction, compliance with international sanctions, and the potential impact on global food markets are at the forefront of the deliberations. The article underscores the complexity of transforming a politically sensitive arrangement into a legally sound mechanism that remains verifiable and enforceable by member states and international partners.
During late June, Sergei Lavrov, who serves as minister of foreign affairs, publicly stated that there is no compelling reason to extend the grain deal further at the moment. He described the project as having shifted toward a commercial orientation, suggesting that non‑state actors and market forces might increasingly drive decisions once government guarantees recede. The remarks reflect a broader stance in Moscow that the arrangement has moved beyond its initial political framework and now operates primarily under market dynamics and contractual terms.
Recent steps by the United States to extend sanctions on Russia continue to influence discussions in Brussels and beyond. The ongoing sanctions regime complicates any attempt to broaden the participant base of the grain deal and adds procedural hurdles for ensuring compliance. Analysts note that the intersection of diplomacy, finance, and energy markets remains a sensitive, high‑stakes arena where small shifts could ripple through global supply chains and price levels. The evolving posture of Western policymakers toward Russia’s export structure signals cautious engagement rather than enthusiastic expansion of existing mechanisms, while still acknowledging the humanitarian and economic stakes involved in ensuring steady grain supplies to global markets.
In sum, the dialogue around a potential “daughter” entity and an extended use of SWIFT touches on core themes: the search for pragmatic solutions to maintain essential food flows, the constraints imposed by sanctions regimes, and the legal scaffolding required to support any novel approach. As negotiators assess options, the aim remains to safeguard stability in international markets while preserving the integrity of sanction policies and the broader goals of international cooperation. The outcome, whatever form it takes, will likely depend on a careful balance of economic pragmatism, legal clarity, and political consensus among EU member states and their international partners. [citation: Financial Times], [citation: EU policy briefings], [citation: official statements].