The European Commission Board will consider the issue of Ukrainian grain exports tomorrow

Tomorrow, the Board of the European Commission intends to consider proposals by European Commissioner for Agriculture Janusz Wojciechowski to solve the problem of Ukrainian grain exports to the “frontline” countries – Poland, Hungary, Slovakia, Bulgaria and Romania.

The European Commissioner said this today in the Spanish city of Cordoba at a press conference following an informal meeting of EU agriculture ministers, an Ukrinform correspondent reports.

“Import of grain from Ukraine is a very sensitive issue. Tomorrow we will discuss it during a meeting of the European Commission board. You know that my position is clear: we have to support Ukraine, first of all, the transit of grain from Ukraine to more seaports… At the same time, if the ban on such imports to the five frontline states is not extended, we can expect a new large-scale crisis in these border countries,” the European Commission representative said.

He noted that Ukraine itself is also suffering from low grain prices as a result of the Russian blockade of Ukrainian ports. The proposal to provide Ukraine with compensation for transit costs will help maintain the competitiveness of Ukrainian grain exports and return to traditional markets.

“The Black Sea routes are currently blocked by Russia, so the ‘solidarity corridors’ remain the only possible route for Ukrainian exports. This means additional transit costs. We need to develop these routes and use more seaports. The main challenge is not infrastructure, but the economic aspect. Transit is too expensive for Ukrainian companies to export grain and be competitive in other markets. That is why I proposed to support Ukraine financially by compensating the cost of transit. We discussed this at the board,” Wojciechowski said.

The European Commissioner emphasized that such a proposal – to extend the temporary ban on Ukrainian agricultural exports to five “frontline” countries until the end of the year and to provide Ukraine with compensation for transit costs – is currently his personal position, which he will present to the European Commission tomorrow. In addition, tomorrow the board will hear an update from a technical mission that has just visited Romania to explore the possibility of increasing the capacity of its ports. According to Wojciechowski, Romania is currently the main transit country for Ukrainian grain.

“We, as the European Union, strongly support Ukraine. This is especially true of the five neighboring member states, their societies and people, who have made enormous efforts to support Ukraine, which is also reflected in public spending. One of the elements of this support is the opening of our markets to products from Ukraine, primarily agricultural products…. So this temporary ban (on grain exports – ed.) is not discrimination. It does not apply to the entire EU and is seen as a measure to prevent negative consequences for both sides. Direct imports are not good for the farmers of these ‘frontline’ countries, but also for Ukraine, because it is a speculative trade,” the European Commission representative said.

He reminded that currently, Ukrainian exports to the EU market amount to 28 billion euros, of which almost half – 13 billion euros – are agricultural products. Last year, the volume of Ukrainian agricultural exports to the EU increased by 6 billion euros, 5 of which came from the five countries bordering Ukraine, which caused a shock to their markets.

“Ukraine was blocked by Russia, and Ukrainian grain was much cheaper than prices on the global and world markets. This was used, although legally, but not entirely honestly, by those traders who took advantage of this situation. So this (exports – ed.) is not profitable for farmers in the EU and in Ukraine. My proposal is good for Ukraine, because it gives it a chance to return to normal trade on better, non-speculative markets. We will find the best solution that will be acceptable to all partners, including Ukraine,” Wojciechowski expressed confidence.

In his turn, the Minister of Agriculture, Fisheries and Food of the EU Presidency of Spain, Luis Planas, said that the issue of grain imports from Ukraine will be considered by ministers during a formal meeting of the EU Council in the second decade of September.

“We are all on the side of Ukraine. We are here to defend its interests in this war, when Ukraine is suffering from an unjustified invasion by Russia. We know that Ukraine’s neighboring countries are also suffering and have a difficult market situation. We will see what the European Commission decides. We will have a formal meeting (of the EU Council of Ministers for Agriculture and Fisheries – ed.) in Brussels on September 18, so I am sure that this topic will be raised there,” the Spanish minister said.

As reported, in May 2023, the European Commission banned imports of wheat, corn, rapeseed, and sunflower from Ukraine to Bulgaria, Hungary, Poland, Slovakia, and Romania at the insistence of these countries. On June 5, the ban was extended until September 15, 2023.

As reported, in May 2023, the European Commission banned imports of wheat, corn, rapeseed, and sunflower from Ukraine to Bulgaria, Hungary, Poland, Slovakia, and Romania at the insistence of these countries. On June 5, the ban was extended until September 15, 2023.

The Ukrainian authorities insist that if the European Commission extends the ban on imports of Ukrainian grain after September 15, Ukraine may consider mirror measures.

Tags: grain, EU, restrictions, Ukraine