Published by Global Banking & Finance Review®
Posted on March 25, 2025
3 min readLast updated: January 24, 2026
Add as preferred source on GoogleRussia and the US agree to lift sanctions on food and fertiliser trade, enhancing Black Sea security. Russia remains a top exporter, planning to increase exports.
By Guy Faulconbridge
MOSCOW (Reuters) -Russia said on Tuesday the United States had agreed to help it lift a series of Western sanctions and restrictions on food, fertiliser and shipping companies as preconditions for a maritime security deal in the Black Sea.
Diplomats told Reuters that most of the curbs listed by the Kremlin related to European Union sanctions and restrictions.
What was agreed - and what still needs to happen for the deal to enter force?
WHAT DOES RUSSIA SAY IT WILL GET?
* The lifting of restrictions on state agricultural bank Rosselkhozbank "and other financial organizations involved in ensuring international trade in food (including fish products) and fertilisers, their connection to SWIFT, and the opening of necessary correspondent accounts".
* The removal of curbs on trade finance operations.
* The removal of sanctions and restrictions on companies producing and exporting food (including fish products) and fertilisers.
* The removal of sanctions and restrictions on insurance companies dealing cargoes of food (including fish products) and fertilisers. Russian Foreign Minister Sergei Lavrov specifically mentioned the Lloyd’s of London insurance market.
* The lifting of restrictions on the maintenance of ships in port and sanctions against Russian-flagged vessels involved in the food and fertiliser trade.
* The lifting of restrictions on the supply of agricultural machinery to Russia, "as well as other goods involved in the production of food (including fish products) and fertilisers".
WHERE DID THIS DEAL COME FROM?
The White House said it had agreed with Russia to ensure safe navigation, eliminate the use of force, and prevent the use of commercial vessels for military purposes in the Black Sea, but Washington did not call it the "Black Sea Initiative" as the Kremlin did.
The deal is effectively a return to the Black Sea Initiative, struck in 2022 with the help of Turkey and the United Nations. That deal helped Ukraine get its grain and other agricultural products to market while allowing for inspections of shipping in the area to prevent arms supplies. Kyiv complained that Russia was using the inspections to hold up shipments, allegations which Moscow denied.
For Russia, it crucially appears to include many of the conditions of an accompanying three-year memorandum of understanding under which U.N. officials agreed to help Russia get its food and fertiliser exports to foreign markets.
Russia withdrew from the Black Sea Initiative in 2023, complaining that its own food and fertiliser exports faced serious obstacles, though Moscow is not currently facing serious problems getting its grain to market by the Black Sea.
Lavrov said that Russia and Turkey had subsequently agreed a return to the deal but that Ukraine had suddenly pulled out.
SO WHAT?
While Russian exports of food and fertiliser are not subject to Western sanctions, Moscow has said restrictions on payments, logistics and insurance have amounted to a barrier to shipments.
Still, Russia remains the world's top wheat and fertiliser exporter. Russia is expected to send around 40 million tons of wheat to the global markets this season, mainly to traditional customers in the Middle East such as Egypt, and aims to boost its overall agriculture exports by 50% by 2030.
Russia also exported around 40 million tons of mineral fertilisers last year with Brazil, India, China and the U.S. as major buyers. The country plans to boost fertiliser production by one third to around 80 million tons by 2030.
(Reporting by Guy Faulconbridge; editing by Mark Heinrich and Philippa Fletcher)
Russia seeks the lifting of restrictions on its state agricultural bank, trade finance operations, and sanctions on companies involved in food and fertiliser exports.
The Black Sea Initiative is an agreement that was struck in 2022 to facilitate the safe navigation of commercial vessels and ensure the export of agricultural products from Ukraine.
Russia withdrew from the Black Sea Initiative in 2023, citing serious obstacles to its own food and fertiliser exports, despite not facing significant issues in getting its products to market.
Russia is expected to export around 40 million tons of wheat to global markets this season, primarily to its traditional customers.
The agreement may ease barriers to shipments of food and fertilisers, which could stabilize global markets and improve supply chains affected by previous restrictions.
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