The administration of US President Donald Trump may consider easing targeted sanctions against Russian banks, companies, vessels and individuals linked to the export of mineral fertilisers, the Kyiv Independent reported on 23 October, citing Ukrainian and American officials. In Kyiv, it is believed that such concessions prior to a lasting ceasefire could provide Moscow with additional revenue without altering its military plans.
Briefly about the main points
- Washington may review the targeted restrictions on participants in Russian fertiliser exports.
- There is no general US ban on imports of Russian mineral fertilisers.
- For years, Moscow has been calling for banking and logistics procedures for agricultural exports to be simplified.
- Kyiv’s concerns have grown following the agreement on the supply of Russian diesel.
- Zelenskyy warned that concessions might spread to other sectors.
This refers to targeted restrictions, not a ban on fertilisers
USA did not introduce direct sectoral sanctions against the production or export of Russian mineral fertilisers, nor have they imposed a blanket ban on their import. Therefore, according to the publication’s sources, any potential review would apply to specific participants in foreign trade.
Restrictions on banks handling international payments relating to the shipping sector – including companies, vessels and shipping firms – as well as Russian businessmen subject to sanctions, may be subject to potential easing. Sources at the Kyiv Independent did not specify which particular restrictions might be reviewed.
Journalists contacted the White House for comment, but had not received a reply at the time of publication.
Russia has long been raising the issue of fertiliser access to the global market
For years, Moscow has insisted on easier access for Russian fertilisers and agricultural produce to international markets. This was one of the key issues in the negotiations on the Black Sea Grain Initiative, concluded in July 2022 with the mediation of the UN and Turkey.
Russian food and fertilisers were not subject to general Western sanctions, but Moscow cited obstacles relating to bank payments, cargo insurance and maritime transport. In July 2023, Russia withdrew from the grain deal, citing, amongst other things, a failure to meet the requirements regarding its agricultural exports.
A representative of the Ukrainian intelligence services confirmed to the Kyiv Independent that Russia had been raising the issue of fertilisers in its dealings with the US and European countries for many years.
Kyiv links the risk of concessions to the agreement on diesel
The Ukrainian authorities’ concerns intensified following the decision Trump ease restrictions on supplies Russian diesel fuel. This move drew criticism in the US, as Congress had banned the import of Russian energy products, including diesel, in 2022. At the same time, some Republicans supported the economic agreements as a way of bringing the Kremlin to the negotiating table.
On 16 October, the White House also announced that some of the sanctions provided for in the new legislation concerning Russia and Iran would be temporarily suspended. On the same day in Brussels, the President Volodymyr Zelenskyy warned that agreements on gas and other sectors of the Russian economy could follow on from the diesel deals.
Ukrainian officials believe that economic incentives for Moscow prior to the establishment of a sustainable ceasefire could increase its revenue without it having to revise its military objectives. As of 24 October, the White House had not announced any agreement on fertilisers, and the list of sanctions that might be reviewed remains unknown.
