The United Nations (UN) is trying to extend a deal allowing the Black Sea export of Ukraine grain, with the European Union (EU) saying it's open to explore all solutions ahead of the deal's possible expiration on July 18.

The UN and Türkiye brokered the Black Sea Grain Initiative with Russia and Ukraine in July 2022 to help alleviate a global food crisis, which was worsened by the conflict between Russia and Ukraine – both among the world's leading grain exporters. 

The EU is considering connecting a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) to the international payment network SWIFT to allow for grain and fertilizer transactions, sources familiar with discussions told Reuters on Wednesday.

UN Secretary-General Antonio Guterres sent Russian President Vladimir Putin a letter on Tuesday, proposing a way forward to further facilitate Russian food and fertilizer exports and ensure the continued Black Sea shipments of Ukrainian grain. But he said on Thursday he had not yet received a response from Russia.

According to TASS news agency, Putin said he had not seen the letter from Guterres proposing an extension of the deal, but said Russia was in contact with UN officials.

"We can suspend our participation in the deal, and if everyone once again says that all the promises made to us will be fulfilled, then let them fulfill this promise. We will immediately rejoin this deal," Putin told Russian state television.

A Kremlin spokesman later said that Russia had not taken a final decision on whether to exit the grain deal.

A key demand by Moscow is the reconnection of Rosselkhozbank to SWIFT. It was cut off by the EU in June 2022 due to the conflict between Russia and Ukraine.

The European Commission's priority is to ensure that Ukrainian grain can reach the world market and it calls on all parties to extend the Black Sea deal, an EU spokesperson in Brussels said on Thursday.

"We are assisting the talks led by the UN and Türkiye as required," the spokesperson said, adding that they are open to "explore all solutions" that contribute to their objective.

Ukrainian President Volodymyr Zelenskyy said he spoke with South African President Cyril Ramaphosa on Thursday and that they both agreed it was "vital" to extend the Black Sea deal.

"It is very important that there be no threat to food security anywhere in the world," Zelenskyy said in a night video address.

More than 32 million tonnes of corn, wheat and other grains have been exported by Ukraine under the arrangement. UN data said that the deal has benefited poor countries by helping lower food prices more than 20 percent globally.

To convince Russia to agree to the Black Sea deal, a three-year memorandum of understanding was struck in July 2022 under which UN officials agreed to help Russia get its food and fertilizer exports to foreign markets.

While Russian exports of food and fertilizer are not subject to Western sanctions imposed after the Russia-Ukraine conflict began in February 2022, Moscow said restrictions on payments, logistics and insurance have amounted to a barrier to shipments.

As a workaround to the lack of access to SWIFT, UN officials have got U.S. bank JPMorgan Chase to start processing some Russian grain export payments with reassurances from the U.S. government.

The UN is also working with the African Export-Import Bank to create a platform to help process transactions for Russian exports of grain and fertilizer to Africa, a UN trade official said.

(With input from Reuters)