EU Plans to Partially Lift Asset Freeze on Certain Russian Banks Due to Grain Issue

The European Union intends to partially lift the freeze on assets of Russian banks to facilitate food trade. Reuters reported, citing a draft document being prepared, that the EU "will amend sanctions imposed on banks such as VTB, Sovcombank, Novicombank, Otkrytie, VEB, Promsvyaz, and Rossiya." It is noteworthy that the EU will freeze assets of Sberbank, the largest Russian bank, except for those necessary for food trade, as part of new sanctions to be adopted on Wednesday, July 20. The draft document states that asset freezes may be lifted "once it is determined that these economic resources are necessary for the purchase, import, or transfer of agricultural products and food, including wheat and fertilizers." This move comes amid criticism from African leaders regarding the negative impact of sanctions against Russia on global trade, which may exacerbate the global food crisis. An official stated that under the amended sanctions, the EU also plans to facilitate food exports from Russian ports, which traders have stopped servicing due to EU sanctions; however, the EU continues to deny any impact of its sanctions on food trade.