The European Commission may extend for another two months the embargo on imports of Ukrainian grain, including wheat, corn, rapeseed and sunflower seeds, to Poland, Hungary, Romania, Slovakia and Bulgaria.
A source close to the negotiations told Interfax-Ukraine on Wednesday in Brussels.
As you know, a meeting of the coordination platform is taking place in Brussels on Wednesday with the participation of the countries concerned.
“It is proposed to extend the ban on imports of Ukrainian grain for two months. It is not yet known when the official decision will be made,” he said.
At the same time, the deadline for the ban on Ukrainian grain imports expires on September 15.
As you know, in May 2022, the EU decided to suspend import duties, quotas and trade remedies on Ukrainian exports to the European Union – known as autonomous trade measures – to help alleviate the difficulties faced by Ukrainian producers and exporters after the Russian invasion. At the same time, following logistical problems in Bulgaria, Hungary, Poland, Romania, and Slovakia caused by imports of wheat, corn, rapeseed, and sunflower seeds originating in Ukraine, exceptional and preventive measures on their imports came into force on May 2, 2023, and were extended on June 5.
A day earlier, on September 12, European Commissioner for Agriculture Janusz Wojciechowski spoke in the European Parliament about the need to maintain the ban on imports of wheat, corn, rapeseed and sunflower seeds from Ukraine to Bulgaria, Hungary, Poland, Romania and Slovakia. According to him, this decision has proved to be effective and should be extended after September 15 with the simultaneous expansion of the Solidarity Roads for the transit of these Ukrainian products. “We have found a solution that, firstly, stabilized the market in these (five) countries, and, secondly, allowed us to increase transit from 2.9 million tons before the ban from Ukraine to 3.2 million tons after the ban was introduced,” he said.
According to the EC, 44 million tons of agricultural products have already been transported from Ukraine via the road and rail “Solidarity Roads” of these countries, and according to current forecasts for this marketing year 2023-2024, Ukraine needs to export 56 million tons of grain, or 4.7 million tons on average per month. “The Black Sea is blocked, and no one knows if it will be unblocked by Russia. Russia knows what it is doing in this regard, what criminal activities it is conducting, and it is using food as a weapon. But we are able to help Ukraine export these 4.7 million tons by land through the Solidarity Corridors. We just need to improve and expand these corridors,” the European Commissioner emphasized.
Wojciechowski mentioned Baltic ports as new routes: Lithuania, Klaipeda, Riga, and the ports of the Adriatic, as Romania is practically unable to increase transit.
Successful exports of Ukrainian grain under the Black Sea Grain Initiative have helped to reduce world prices and strengthen food security, according to a report published on Twitter by the Ministry of Defense of the United Kingdom of Great Britain and Northern Ireland on Friday.
“During this initiative, more than 32 million tons of food entered the world market, and the food price index fell by 23% compared to its peak in March 2022. Developing countries have particularly benefited from lower prices, as well as from direct grain imports from Ukraine,” the statement said.
At the same time, Russia’s withdrawal from the Black Sea Grain Initiative has led to a reduction in exports from Ukraine, which, according to British intelligence, “is a clear attempt to degrade the Ukrainian economy and its ability to maintain its military capabilities.”
The report emphasizes that the agricultural sector accounted for 40% of Ukraine’s exports before the war and remains vital to the country’s economy. In total, food exports from Ukraine amounted to $28 billion in 2021.
“Ukraine has succeeded in using alternative methods of grain exports, such as river, rail, and road transport; however, it is unlikely that this will match the capacity of the Black Sea export routes,” the British intelligence service said.
Ukrainian farmers have already harvested 34 million tons of grain, Prime Minister Denys Shmyhal said.
“The harvest is underway. As of today, 34 million tons of grain have been harvested. In particular, 22 million tons of wheat,” Shmyhal said at a government meeting on Friday.
According to the prime minister, the domestic demand is about 6-7 million tons per year, so Ukraine feels quite confident in food security.
“We continue to work on expanding our export potential. It is important for our economy and important for global food security,” he added.
Ukraine has begun exporting grain through Croatian seaports, First Vice Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko said during a bilateral meeting with Prime Minister of the Republic of Croatia Andrej Plenkovic at the Three Seas Initiative Summit in Bucharest.
“Ukrainian grain has already been exported through Croatian ports. Thank you for this opportunity. This trade route, although niche, is already popular. We are ready to develop it by expanding the capabilities of the transportation corridor. We believe that this logistics route will play an important role in bilateral trade between our countries even after the war,” the press service of the Ministry of Economy and Trade quoted her as saying.
According to the report, the parties discussed bilateral trade and exports of Ukrainian grain through Croatian ports. They also discussed the importance of jointly resolving the issue of export restrictions for Ukrainian exports. The meeting also touched upon the issues of demining, war crimes investigation, and opening new trade routes for Ukrainian grain exports.
The parties raised the issue of accelerating the localization of demining equipment production to start its production at the facilities of domestic enterprises.
“One of the most important tasks for Ukraine in the near future is to demine the territories and return potentially contaminated land to use. Both post-war recovery and further development of the national economy depend on the speed of this process. That is why we are grateful to all partners who help Ukraine resolve this issue,” Svyrydenko emphasized.
Plenkovic offered to assist Ukraine in investigating war crimes. This includes sharing Croatia’s experience and expertise in establishing special prosecutors and special police to investigate crimes committed during the war.
As reported, the main routes for exporting Ukrainian agricultural products after the shelling of port infrastructure on the Black Sea remain land transport and seaports on the Danube.
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 European Commission extended the ban until September 15, 2023.
Agrarians of all regions of Ukraine have started sowing winter crops for grain, as well as actively sowing rape. As of early September, 699.7 thousand hectares of winter crops have already been sown, including 654.9 thousand hectares of rape and 44.8 thousand hectares of grain, the press service of the Ministry of Agrarian Policy and Food reported.
According to the report, winter wheat has already been sown on 42.5 thousand hectares, winter barley on 1.2 thousand hectares, winter rye – 1.1 thousand hectares.
According to the ministry, due to favorable weather conditions sowing of rape has already been completed in Volyn, Poltava, Sumy and Ternopil regions. The largest areas under winter rape are now in Ternopil (72.5 thousand hectares), Vinnitsa (67.2 thousand hectares) and Kirovograd (59.4 thousand hectares) regions.
As reported, according to a survey conducted by the Ministry of Agrarian Policy, the vast majority of agrarians do not plan to significantly change the sowing areas under winter crops in 2024 compared to last season.