The European Union is considering a proposal to create a subsidiary of the sanctioned Rosselkhozbank (Russian Agricultural Bank) to restore its connection to the global financial network as a concession to Moscow to preserve the Black Sea Grain Initiative.

According to Financial Times, last week, Russia said it saw no reason to extend the agreement beyond 17 July, accusing the West of "outrageous" actions on the deal.

At negotiations mediated by the UN, Moscow proposed a plan that would allow a subsidiary of Rosselkhozbank to make payments related to grain exports, the newspaper writes, citing sources.

The new banking unit will be allowed to use the SWIFT global financial system, which was closed to the largest Russian banks after the invasion of Ukraine last year.

In addition to restoring access to SWIFT, Russia also seeks to restore the supply of agricultural machinery and spare parts for it, as well as remove restrictions on insurance and reinsurance.

Earlier, Russian President Vladimir Putin accused Western countries of not fulfilling Russian requirements within the framework of the Black Sea grain initiative and said that Moscow was considering a way out of it.

The Ukrainian Foreign Ministry believes that Russia is likely to withdraw from the Black Sea Grain Initiative in July.