US urged JPMorgan to ‘be patient’ before halt to process Russia grain payments

Washington urged JPMorgan to “be patient” before the U.S. bank stopped processing agricultural payments for Moscow after it quit a deal allowing the safe Black Sea export of Ukraine grain, a senior State Department official told Reuters on Wednesday.
JPMorgan had handled some Russian grain export payments for a few months with reassurances from Washington. However, that cooperation stopped in early August, said Russia’s Foreign Ministry, after Moscow quit the Black Sea grain deal in July.
“It was JPMorgan’s decision, and in fact, we had … made clear to the Russians that if they could show signs they were returning to the deal, it would be much easier to keep this payment system alive,” James O’Brien, head of the State Department’s Office of Sanctions Coordination, told Reuters.
He said that JPMorgan made a “completely commercial decision based on business and reputational factors.”
JPMorgan had initially agreed to the arrangement at the request of the U.S. government and “not because there was ever money to be made,” said a source familiar with JPMorgan’s approach, speaking on condition of anonymity.