Business news from Ukraine

Business news from Ukraine

Hungary proposes to expand maritime routes for agro exports from Ukraine

24 June , 2023  

Hungarian Minister of Agriculture Istvan Nagy is not satisfied with the work of European solidarity corridors and believes that the expansion of the traditional maritime transport route, which now takes only 12% of Ukrainian agricultural products, will help to reduce the pressure on domestic markets of the EU.

“The current solidarity routes are not fulfilling their role, as the products remain in Ukraine’s neighboring countries. We used to have 40-50 thousand tons of grain, now we have 2.5 million tons. The purpose is to expand the traditional sea transport route, by which now only 12% of Ukrainian products leave. This will reduce the load on the land route and reduce the pressure on EU domestic markets,” the Hungarian Ministry of Agriculture quoted him as saying at a press conference with his Polish counterpart Robert Telusz in Warsaw on Thursday.

Nagy said he had asked his Polish counterpart for a mandate to negotiate with the Turkish side to open new sea routes for grain exports in addition to the existing three Black Sea ports.

He called it important to maintain and expand cooperation among the five EU member states. “We are determined to continue to cooperate (…) to find a common European solution to this problem; it is an important humanitarian and solidarity goal,” the Hungarian minister stressed.

Nagy praised the joint actions of the five EU member states – Bulgaria, Romania and Slovakia, as well as Poland and Hungary – in suspending imports of Ukrainian grain. Thanks to the joint implementation of the will “today we can protect our borders and farmers as a result of measures of the European Union, not national measures,” he said, and expressed regret that the restrictive measures are valid only until September 15.

Hungarian and Polish ministers stated that the restriction period until Sept. 15 was too short. “For example, the corn harvest will still be going on, so we definitely need to push for the extension (of restrictive measures – IF),” Nagy said.

Polish Minister of Agriculture Robert Telusz called important the Hungarian initiative to expand the Black Sea Route, which he said Warsaw would support. At the same time, he stressed the need for the development of land transport routes.

Telusz praised the merits of the Hungarian side in the creation of the five-member coalition on the grain issue. He noted that without the actions of this association the European Commission “would not have seen the problem at all”.

The Polish minister also stressed the importance of maintaining this alliance. “Together we can fight not only for issues important to our countries, but also for the future of Europe,” he said.

According to him, after the war is over, the process of Ukraine’s integration into the European Union can continue, and with it, “the issue of Ukrainian products will come up again.” “If today we do not make the European Commission develop real tools to solve this problem, the problem will have unpleasant consequences,” Telusz said.

He also said that he agreed with his Hungarian colleague to organize a meeting with Ukrainian Minister of Agrarian Policy and Food Nicholas Solsky to find common solutions to solve the problem of grain imports.

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