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Russia's Black Sea ceasefire demands are a 'fools errand' for Trump, major blow for Ukraine

Russia's Black Sea ceasefire demands are a 'fools errand' for Trump, major blow for Ukraine

Yahoo31-03-2025
With much fanfare, the U.S. on March 25 announced it had brokered an agreement between Russia and Ukraine to "eliminate the use of force" in the Black Sea after two days of talks in Saudi Arabia.
But while Kyiv said it was ready to abide by it straight away, Moscow stalled, insisting the U.S. lift some of the sanctions imposed on it since the start of its full-scale invasion of Ukraine.
The Kremlin has innocuously framed its request as a badly-needed boost to its global food and fertilizer trade, largely in the hands of several Russian agro-oligarchs.
But experts and officials who spoke to the Kyiv independent said lifting sanctions could in fact help line the pockets of both Russian oligarchs and Moscow's war machine, as well as putting pressure on what has so far remained a largely unified Western sanctions response to Russian aggression.
"Any easing of sanctions directly benefits the system fueling Russia's war," a Ukrainian official who works on sanctions told the Kyiv Independent under the condition of anonymity because he wasn't authorized to comment on the issue.
"It's impossible to separate Russian oligarchs from their chemical assets — especially fertilizer plants — which are deeply intertwined with the Russian military-industrial complex," they added.
When announcing the ceasefire deal, the U.S. said it would "help restore Russia's access to the world market for agricultural and fertilizer exports," but did not provide further details of how this could happen, or if it would involve the lifting of sanctions. Russia's main demand is to lift sanctions on some financial institutions including the state-owned agricultural bank Rosselkhozbank.
In addition, it wants other banks related to agriculture to be reconnected to the Brussels-headquartered SWIFT global banking payment system. Russian banks were disconnected from SWIFT after the start of Russia's full-scale invasion of Ukraine in 2022.
Despite the Kremlin insisting Russia's global agribusiness needs the boost from eased sanctions, it is in fact already on the up.
"An integral part of the Black Sea initiative is the lifting of sanctions on our banking institutions involved in settlements related to agricultural goods," Kremlin spokesperson Dmitriy Peskov told reporters on March 28, Russian state news agency TASS reported.
"If European countries refuse to take this step, it means they are not interested in following the path of peace," he added.
Russia is one of the top agricultural exporters globally and its food and fertilizer companies were not sanctioned to ensure global food security.
Despite the Kremlin insisting Russia's global agribusiness needs the boost from eased sanctions, it is in fact already on the up.
Sanctions have made it harder for the sector to secure insurance for shipping and access to finance and machinery, but this has not majorly impacted their trade.Russian agricultural exports increased by 8% in 2023 compared to 2022, and by nearly 10% in 2024. Fertilizer exports dropped by 27% in 2023 compared to 2022 but increased by 15% compared to 2021. In the last year, Russian fertilizer has become even more competitive, thanks largely to cheap gas, Lilit Gevorgyan, Associate Director, Economics at S&P Global Market Intelligence, told the Kyiv Independent.
Despite a 30% tariff on Russian fertilizer imports in the EU, they have become increasingly common in the bloc, making up 25% of the market, according to S&P Global Market Intelligence.
Read also: As Ukraine, Russia agree to ceasefire at sea, Moscow's battered Black Sea Fleet is set to get a reprieve
Moscow's demands are likely less about boosting its agriculture sector and more about overcoming wider financial sanctions, several experts told the Kyiv Independent.
Currently, due to being disconnected from SWIFT, Moscow is reliant on the Chinese banking system, although problems emerged last year when Chinese banks began curbing Russian transactions over fears of losing access to the U.S. dollar.
Regaining access to the Western financial system would be a major boon for Moscow as all of its major state-owned banks are sanctioned, so they cannot be used for trade or capital operations. The Kremlin likely picked Rosselkhozbank because of its agricultural lending, which fits its narrative around the deal being important for its agricultural sector.
However, the state-owned bank is not limited to agribusinesses. If the sanctions against it are lifted, it could lend to anyone while also being used to circumvent other sanctions, launder money, and receive oil export revenues. Russia "needs to have a large state-owned or state-controlled bank outside of the sanctions perimeter," said Alexander Kolyandr, a non-resident Senior Fellow with the Democratic Resilience Program at the Center for European Policy Analysis (CEPA).'That will generally help Russia to reduce risks and prices of imports, facilitate export, and make capital movements easier,' he added.
Additionally, while food and fertilizer companies have not been sanctioned, its agro-oligarch owners, such as billionaire fertilizer tycoon Andriy Melnichenko, one of the most important businessmen in Russia with close connections to the Kremlin, have been.If sanctions on Rosselkhozbank are lifted, they would be able to use the bank to move money, get loans, and make potential investments, funneling money into the pockets of businessmen that have fuelled the Kremlin's war machine.
Fertilizer companies in particular have sold chemicals to Russia's military industrial complex, such as Melnichenko's company Eurochem, Reuters has previously reported.
Russia also wants to get rid of restrictions on European ports that have prevented its vessels from docking, and wants sanctions lifted on ships flying the Russian flag. This would boost Russia's exports and allow its ships to seek maintenance at EU ports. Moscow's final demand is to allow the import of agricultural machinery, like tractors, which have been banned by the U.S. and the EU.
Western machinery could improve productivity and revenue for Russian agribusinesses, meaning more money for their oligarch owners.
U.S. President Donald Trump sees sanctions as a negotiation tool and threatened Russia with secondary oil sanctions on March 30 for heel-dragging during the peace process.
Despite this, the White House has already said it is mulling over lifting sanctions as part of the Black Sea deal, and noted that some of the sanctions Russia wants lifted belong to the EU, not the U.S. Ukraine's Foreign Ministry spokesperson Heorhii Tykhyi said on March 27 that so far, Ukraine and the U.S. haven't agreed to lift any sanctions on Russia.
If the U.S. does heed Moscow's demands, Russia will have access to hard currency and a more productive agricultural sector, Gevorgyan said.
"The loosening of sanctions will have the very real effect of immediately helping to feed the defense industrial machine within Russia."
In turn, this would benefit the oligarchs that have profited off the war, from stealing Ukrainian grain in occupied territories, to selling chemical products to Russia's military sector. "The loosening of sanctions will have the very real effect of immediately helping to feed the defense industrial machine within Russia," Steven Horrel, non-resident Senior Fellow with the Transatlantic Defense and Security Program at CEPA, told the Kyiv Independent.
Horrell adds there is also concern that even the lifting of limited and specific sanctions could undermine the entire sanctions regime imposed by Western nations in their support for Ukraine and fight against Russian aggression.
Giving in to Putin now would be a "fool's errand" and a "show of weakness" from the U.S., he said, adding it would also destigmatize Russian companies that have stolen from Ukraine and "reward an aggressor for invading its neighbor."
Even if the White House eases restrictions, European countries are likely to continue sticking to their guns.
"This may be intended to drive a further wedge between the U.S. and Europe", Taisa Markus, adjunct professor at the University of Illinois College of Law, and visiting professor at Kyiv Mohyla Faculty of Law, told the Kyiv Independent.
"Even if the U.S. lifts financial sanctions, so long as EU, U.K. and other sanctions remain in place, Moscow is unlikely to gain meaningful access to the global financial markets, and major American financial institutions are likely to remain hesitant to do business with Russia," she added.
Read also: Unless you act, 'it's just rhetoric' — Baltic states skeptical of Western European leadership
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For Putin, 'Security Guarantees' on Ukraine Mean Something Different
For Putin, 'Security Guarantees' on Ukraine Mean Something Different

Newsweek

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For Putin, 'Security Guarantees' on Ukraine Mean Something Different

Based on factual reporting, incorporates the expertise of the journalist and may offer interpretations and conclusions. Russia, Ukraine and European powers have all emerged from meetings with President Donald Trump in support of establishing security guarantees as part of a broader agreement to put an end to the bloody war between Moscow and Kyiv. Trump vowed to commit to Ukraine's postwar defense during his meeting with Ukrainian President Volodymyr Zelensky and European leaders on Monday, a move welcomed by his visitors. He said Russian President Vladimir Putin had also agreed to accept guarantees on Ukraine during their meeting in Alaska on Friday in what the U.S. leader described as a "very significant step." What such guarantees look like, however, remains a core sticking point among the parties to the conflict, and efforts to find a common definition may be crucial to achieving a breakthrough. 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Six more rounds of expansion would follow, bringing the bloc to its current strength of 32 nations, including all of Russia's Eastern European neighbors with the exceptions of Belarus and Ukraine. Many entered for fear of a resurgent Russia looking to reassert its influence on the continent. Moscow has broadcast an opposing view—that it was NATO threatening Russian security. And Kyiv's ambitions to join the bloc, which predate the 2014 revolution that brought to power a pro-West government and set the conditions for the current crisis, have long drawn particular scorn from the Kremlin. Joshua Shifrinson, associate professor at the University of Maryland's School of Public Policy, cited a cable sent in 2008 by then-U.S. ambassador to Russia Bill Burns (later President Joe Biden's CIA chief) to then-Secretary of State Condoleezza Rice warning that "Ukrainian entry into NATO is the brightest of all red lines for the Russian elite (not just Putin)." 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The conditions were dismissed after brief talks early the following year, with then-President Joe Biden's administration releasing intelligence concluding that Putin was on the precipice of ordering a large-scale invasion. Three and a half years later, Russian and Ukrainian forces remain locked in the deadliest combat the continent has seen since World War II. Meanwhile, NATO has only further expanded, counting Finland and Sweden as members in 2023 and 2024, respectively, and European states are undergoing a historic rearmament plan. A New Order for Europe While much focus has centered on the amount of territory seized by Russia—nearly a fifth of Ukraine—Chekov pointed out that the issue of land, along with economic measures, would need to be addressed as part of a broader agreement that also included security guarantees. "From the meeting in Alaska and the subsequent conference in Washington, we observed the institutionalization of several venues for negotiations on the Ukraine crisis," Chekov said. "These include security guarantees, territorial issues, and relief of Western sanctions imposed on Russia," he added. "All these topics are interdependent, and a final resolution of the Ukrainian crisis seems most promising if they are addressed together." Artem Kvartalnov, a former research fellow at the Russian Center for Policy Research now at the University of Texas at Austin, outlined what Moscow may desire in terms of reshaping the European security architecture in a way that neutralizes NATO entry into future conflicts, thus achieving Putin's long-held vision. 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"So, if it's party part of the security guarantee, it can block a response, in some way, to a crisis in the future should a crisis occur." "I mean, look, the Europeans don't want to have to fight Russia for the future of Ukraine," he added, "but they are desperate, I think, to keep the U.S. involved in European security affairs." Moscow's position on the issue was voiced in a Telegram post Monday by Russian Permanent Representative to International Organizations in Vienna Mikhail Ulyanov. "Many EU leaders emphasize that the future peace agreement should provide reliable security guarantees for Ukraine," Ulyanov wrote. "Russia agrees with this. But it has every right to expect that Moscow will also receive effective security guarantees." (Left to right) Ukrainian President Volodymyr Zelensky speaks as French President Emmanuel Macron and U.S. President Donald Trump listen during a meeting with European leaders in the East Room of the White House in Washington,... 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"The vice president goes around saying, 'We're done, we're not sending any more arms to Ukraine,' and the idea that, somehow, we're going to give them a security guarantee that would obligate us to defend them, it doesn't really add up," he added. "And so, there are some internal contradictions here that have to be worked out." Also significant is the backlash Trump has received for considering security guarantees for Ukraine from influential voices in his "Make America Great Again" support base, many of whom have sought to push the president toward extracting the U.S. from the conflict. Trump on Tuesday clarified his stance, offering his "assurance" during an interview with Fox & Friends that any guarantees would not include the deployment of U.S. troops to Ukraine. He also revealed, however, that European allies may be willing to send soldiers and that the U.S. is "willing to help them with things," including air support. 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NATO defense chiefs hold virtual meeting on Ukraine security guarantees
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Nikki Haley: Trump Needs To Rebuild U.S.-India Relationship
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