Business news from Ukraine

Business news from Ukraine

Minister: Grain dispute will not be last economic discussion during Ukraine’s accession to EU

The number of economic discussions will increase as Ukraine approaches EU accession, and they will mainly concern agriculture, as 40% of the legislative norms that need to be harmonized relate to the agricultural sector, said Mykola Solsky, Minister of Agrarian Policy and Food.

“We need to understand that as we get closer to (Ukraine’s) accession to the European Union, the number of economic discussions will increase. We need to develop immunity to them, be smart and pragmatic,” he said on the air of the United News marathon.

The minister also noted that this year Ukraine received a list of legislative norms from the EU that need to be prepared and changed, and 40% of everything that needs to be adapted to join the EU is related to agriculture and food.

Solsky emphasized that in recent months, Ukraine has for the first time faced the need to defend its economic position to neighboring countries. “This is the first but not the last economic discussion,” he added.

The minister also emphasized that the grain dispute with neighboring countries is the first precedent for Ukraine that has caused such an emotional reaction among Ukrainian society and politicians.

“I propose to treat this as if we have taken half a step to the last line before joining the European Union. When we become a member of the European Union, it will always be like that. This is normal according to the rules of the European Union. This is a democratic association (…) This is a process that we will obviously go through many times,” the Minister of Agrarian Policy said.

Answering a question about the possible escalation of emotions around Ukrainian agricultural exports during the EU accession, Solsky said that there will definitely be such discussions, but “we should not be afraid of them, but should immediately prepare, learn something and take into account something.”

According to the minister, the work at the European Commission level over the past six months has shown that this association regularly holds meetings of agricultural ministers, where discussions are constantly taking place.

“Each state has its own farmers, its own processors, its own interests, which it considers national. They sometimes go against the opinion of other members of the European Union. (…) If we want to be a member of the European Union, we need to be ready to defend our interests publicly, sometimes not publicly,” the minister explained.

As reported, during the week, Solsky held telephone talks with the agriculture ministers of Romania, Bulgaria, Slovakia, Hungary and Poland to discuss the details of the introduction of stricter controls over the export of Ukrainian wheat, rapeseed, sunflower and corn to these countries after the European Commission lifted restrictive measures. Ukraine is obliged to provide written explanations to the neighboring countries on the implementation of the proposed procedures. Negotiations will continue next week.

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Zelenskyy proposes to create grain hubs in African ports

President of Ukraine Volodymyr Zelenskyy has proposed creating grain hubs in African ports, the president’s website reports.

“Ukraine offers very clear actions. To prevent any shocks to the global food market, we can create hubs for millions of tons of grain per year in particularly sensitive areas, such as African ports,” the press service quoted Zelensky as saying during the Sustainable Development Goals summit.

According to him, negotiations have already begun on such opportunities. This will help prevent any shocks to the global food market.

He noted that Ukraine will never abandon its role as a guarantor of global food security: “No one expected us to be able to push the Russian fleet out of our Black Sea waters and give more space to the Black Sea Grain Initiative and the humanitarian initiative Grain from Ukraine. The results are really impressive.”

“Ukrainian food exports have reached the shores of Algeria, Djibouti, Egypt, Kenya, Libya, Lebanon, Morocco, Somalia, Tunisia, Bangladesh, China, India, Indonesia, Malaysia, Sri Lanka, Thailand, Vietnam, Oman, Pakistan, Turkey, Yemen and other countries. From transit ports, our products were delivered to Ethiopia and Sudan,” the President emphasized.

According to him, the total amount of food is 32 million tons. This is 32 million tons less chaos.

“I thank all those leaders who supported our export programs. Thank you, friends! We have done it. And nothing prevents us from achieving much more ambitious goals,” Zelensky added.

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Croatia refuses to import Ukrainian grain

Croatian Prime Minister Andrej Plenkovic said he does not intend to allow Ukrainian grain to enter the country’s domestic market, Politico reported on Tuesday.

“Croatia’s position and desire is that we are a transit country, not a country that will receive a huge amount of Ukrainian grain, which is cheaper than ours,” Plenkovic said.

According to him, imports of such products would lead to the fact that “our farmers would be in trouble.”

On September 15, the European Commission announced the termination of restrictive measures on the export of Ukrainian grain and other food products to the EU. Later, the authorities of Poland, Hungary, and Slovakia announced their own bans.

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European Commission calls on Poland and other countries to be constructive on Ukrainian grain imports

On Sunday, the European Commission called on Poland, Hungary and Slovakia to be constructive after they unilaterally announced that they would extend the ban on grain imports from Ukraine despite the Commission’s decision to end the ban, Reuters reports, citing a European Commission spokesman.
“We are aware of statements by some member states regarding unilateral measures. It is now important that all countries work in a spirit of compromise and engage in constructive cooperation,” the Commission spokeswoman said.
According to her, Brussels is now focused on “putting in place and making work the new system that has just been announced.”
In particular, Reuters reports that a meeting with representatives of all interested EU countries will be held on Monday to discuss the issue of Ukrainian grain imports in more detail.
The news agency notes that Ukraine was one of the world’s leading grain exporters before Russia’s invasion in 2022 reduced its ability to deliver agricultural products to world markets through Black Sea ports. Since then, Ukrainian farmers have relied on grain exports through neighboring countries.
However, the influx of grains and oilseeds to neighboring countries has affected the incomes of local farmers and led governments to ban imports of agricultural products from Ukraine.
As reported, the ban on the export of wheat, barley, rapeseed and sunflower seeds from Ukraine to Poland, Hungary, Slovakia, Romania and Bulgaria, introduced on May 2 for the period until June 5, was extended until September 15.
On Friday, September 15, the EU allowed the ban to be lifted after Ukraine promised to take measures to tighten export controls to neighboring countries.

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Romania expects plan to control grain exports from Ukraine

Romania is waiting for Ukraine to submit an action plan for effective measures to control grain exports “to prevent market distortion,” which Ukraine promised to submit by the end of Monday, September 18, according to a press release from the Bucharest government, local media reported on Friday evening.

The executive’s statement comes after the European Commission on Friday decided to lift restrictions on Ukrainian grain imports in five countries, including Romania, but asked Kyiv to develop a plan for effective measures to control transportation.

“Depending on the Action Plan presented by the Ukrainian side, the Romanian government will decide on appropriate measures to protect Romanian farmers,” the statement said.

“The government is in constant contact with the European Commission and the Ukrainian side to ensure that the new mechanism for restricting imports of Ukrainian products proposed by the EC prevents distortion of the markets of EU member states,” the statement said.

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Polish actions against Ukrainian grain wrong – Ukraine’s trade representative

Poland’s actions regarding Ukrainian grain are wrong, unlawful and harmful for Polish, Ukrainian and all farmers in the European Union, said Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine.

“Finally, Poland has told the truth about Ukrainian grain. It is not about this season, but about the conditions of Ukraine’s accession to the EU. This was very clearly stated by Minister of Agrarian Policy Telus,” he commented on Facebook about Poland’s unilateral extension of the embargo on Ukrainian agricultural exports.

The Ukrainian trade representative noted that in this way, “in fact, introductory negotiations on agriculture have begun” with “such aggressive combat intelligence and complete antagonism on the part of Poland.”

“In fact, Poland is fighting for a liberum veto in Ukraine without any explanation,” he wrote, and emphasized that Ukraine will stand by the fact that Poland’s actions regarding Ukrainian grain are wrong, unlawful and harmful to Polish, Ukrainian and all EU farmers.

A number of public figures joined the discussion of Poland’s political action under the auspices of the Ukrainian Trade Representative. In particular, Lukasz Adamski, vice director of the Meroszewski Center, pointed out that Ukraine’s unwillingness to integrate into the European Union is due to “a mental factor – the inability of Ukrainian officials to draw conclusions from the policy mechanisms that outline the policies of the EU and its states.”

He pointed out to the deputy minister that the emotional rhetoric is “objectively counterproductive” for Ukraine and creates the image of a state that “although in a very difficult situation, is not a member of the EU, but is only trying to enter (it – IF-U), and is already challenging its closest and most trusted ally in waging a war (trade – IF-U) and (…) blocking transit.”

“The simple emotional imposition of one’s position without the possibility of a normal conversation is the problem created by the agrarian bloc of the Polish government. With all due respect, I want a normal conversation. What is being proposed is to agree to agrarian subjugation because you need it. This is nonsense in any context,” Kachka countered.

Volodymyr Lapa, former head of the State Service of Ukraine for Food Safety and Consumer Protection, noted that the thesis that Ukrainian officials are unable to comprehend the mechanisms of EU policy when the EU is on Ukraine’s side in this matter seems “somewhat strange.”

“Rather, it is about Poland’s inability to adhere to the principles of the EU’s common policy if it contradicts the current political interests of local elites,” he stated.

Mykola Gorbachev, President of the Ukrainian Grain Association, thanked the Ukrainian Trade Representative for his position and cooperation and expressed confidence that after Ukraine wins, which Poland is helping, the issue will be resolved, as “open Ukrainian ports can solve the problem.”

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