MOSCOW (Reuters) – JPMorgan Chase & Co received permission from the United States to process payments for Russian Agricultural Bank but such an avenue cannot replace the reconnection of the bank the SWIFT payment system, a Russian source told Reuters.
Reconnecting the bank to SWIFT is one of Russia’s key demands in a negotiation over the future of the Black Sea grain deal. Moscow has repeatedly warned the deal will sink unless the West eases obstacles to Russian grain and fertiliser exports.
“JPMorgan received an OFAC [U.S. Office of Foreign Assets Control] license to make payments in relation to agricultural exports, but transactions are difficult,” said the Russian source, who spoke on condition of anonymity.
“This cannot replace SWIFT.”
JPMorgan did not reply to requests for comment.
A different source familiar with the transaction said the U.S. State Department and U.S. Treasury had asked JPMorgan to carry out the “very limited and highly monitored” transaction in relation to the export of agricultural materials, which occurred this month.
(Editing by Guy Faulconbridge, Editing by Louise Heavens)
