Greek Minister of Infrastructure and Transport Christos Staikouras has initiated the launch of a railway connection between Greece, Bulgaria, Moldova and Romania to connect with Ukraine, Noi.md reports.
According to the report, the Greek minister proposed to launch the train during a summit in Varna (Bulgaria) on October 9 to diversify trade ties between Mediterranean ports and Ukraine.
The Greek government proposes that trains should run to the Greek ports of Alexandroupolis and Thessaloniki from the ports of Ruse in Bulgaria and Constanta in Romania, and then connections could be established with Moldova and Ukraine. This project can become an alternative option in trade relations between the two countries, strengthening transport links and international freight transportation, Greece believes.
The Greek Minister of Transport sent a letter of intent to European Commissioner for Transport Adina Valean, Bulgarian Minister of Finance Assen Vasilev, Bulgarian Minister of Transport and Communications Georgi Gvozdeykov, and Romanian Minister of Transport and Infrastructure Sorin Grindian.
As reported, the European Union is exploring alternative routes for Ukrainian grain through Italy and Greece.
Ukrainian President Volodymyr Zelenskyy will pay an official visit to Romania next week, Digi24 TV channel reported on Friday, citing its own sources.
Volodymyr Zelenskyy will meet with Romanian President Klaus Iohannis and other officials of the country.
It is reported that this will be the first visit of the Ukrainian president to Romania since the beginning of the Russian invasion of Ukraine. The possibility of such a visit was previously announced by Ukrainian Prime Minister Denys Shmyhal on the same TV channel.
Iohannis and Zelenskyy already met on Thursday in Granada, Spain, at the summit of the European Political Community.
Earlier, Romanian Prime Minister Marcel Ciolacu also announced his visit to Ukraine. The prime minister and some government ministers will go to Kyiv for talks with representatives of the Ukrainian government to establish as many points of cooperation as possible. These include security, energy, agriculture, and many other issues that need to be addressed by the two countries.
Romanian and Ukrainian Agriculture Ministers Florin Barbu and Minister of Agricultural Policy and Food Nikolai Solsky have agreed on a new strict mechanism that will allow four types of grain to be imported to Romania again. The new system will require Ukrainian and Romanian farmers to obtain licenses, the Romanian newspaper Europa Libera Romania reported.
“Export licenses for Ukrainian companies will start in 30 days. During this time, Romania will also create a clear import licensing procedure for Romanian farmers and processors,” the publication quoted a Romanian minister as saying.
Another agreed rule is that imports are carried out only by farmers and processors, not by intermediaries, the sources say.
“A farmer who wants to import, for example, 1,000 tons of sunflower seeds from Ukraine must prove that he does not have that amount and that his animals cannot live without it,” a source close to the talks between the ministers explained to the newspaper.
Romanian authorities will check the stocks of farmers who ask to import grain from Ukraine.
Another condition is obtaining a quality certificate. The farmer will have to take a sample of the imported goods to the National Veterinary and Food Safety Authority (ANSVSA), where he will receive a certificate stating that the goods are of high quality and do not contain banned pesticides.
The licensing system for grain exporters/importers will be introduced within 30 days.
Barbu said that Kyiv will coordinate Ukraine’s proposal to license exporters with each of the five European countries that have banned imports of Ukrainian wheat, corn, sunflower and rapeseed since May.
As reported, the Ministry of Agrarian Policy and Food of Ukraine held talks with the relevant ministries of Slovakia, Poland, Hungary and Bulgaria, which are studying the Ukrainian action plan and preparing comments on it. Next week, the next stage of Ukraine’s negotiations with neighboring countries will take place.
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.
Ukrainian barley in the season-2023 will be 60% exported by road and rail through border crossing points with Romania, the analytical cooperative “Pusk”, established within the framework of the All-Ukrainian Agrarian Rada (UAR), reported.
According to the report, such a decision is explained by the rising cost of freight, as well as the threat of Russian attacks on the infrastructure of the Danube ports.
“Farmers are trying to export barley on their own for the most part. (…) Traders are not too interested in barley trade yet. Rising freight costs create powerful constraints. There is a demand for Ukrainian barley, but the grain is too expensive: for liquidity in river ports the price tag should be 110-$120/ton on terms of CPT, but farmers will not supply at such a low price”, – analysts explained.
According to their information, market participants are afraid of repeated Russian attacks on the infrastructure of the Danube ports. Besides, it is more profitable for agrarians to take barley to the borders than to Reni, particularly to Chop, where the price is $140/ton. Even farmers from the central regions have started to be interested in auto-delivery of barley to Romania – logistics is cheaper, experts added.
They also noted the activity of barley processors on the barley market. Their purchase prices are now 4500-5200 UAH/ton.
“In the first week of September, the conditional prices for barley can grow to $195-202/ton on the basis of DAP Constanta, to $142-147/ton – on the basis of SRT river ports”, – predicted in VAR.
Romania will double the capacity of its main Black Sea port of Constanta and the Danube sea lanes within two months to help Ukraine deliver grain beyond Russia’s reach, Romanian Prime Minister Marcel Ciolacu told the Financial Times.
The Romanian prime minister emphasized that the plan would be implemented regardless of Russian attacks on Ukrainian ports on the other side of the Danube, on the border with Romania.
“In 2023, Ukraine will have about 40 million tons of grain for export. To (facilitate) this, we have increased capacity both in Constanta harbor and on the routes leading to Constanta harbor to make this happen. We mobilized as much as we could,” he said.
Ciolacu recalled that Romania’s promise to expand the shipping corridor by deepening the Danube and expanding port infrastructure came after Russia withdrew from the Black Sea Grain Initiative, which allowed Ukrainian grain to reach world markets via the Black Sea. Moscow also threatened commercial ships and prevented them from leaving Ukrainian ports, which led to exports being diverted through the Danube.
“We have learned well the lessons related to Russia. We have zero dependence on Russian energy and resources. Our support for Ukraine is unconditional,” the Romanian Prime Minister emphasized.
According to him, increasing the capacity of the Black Sea port of Constanta and other routes will allow Ukrainian grain exports to reach 4 million tons per month.
Ciolacu said that investments are currently being made in the Sulina Canal. In addition, there are other “solutions”, such as allowing ships to transit at night from October and increasing cargo transportation to at least 14 ships per day. Doubling the size of barges also “means that Ukraine will not have to use grain warehouses as often,” he said.
The prime minister informed that Romania will open more road border crossings and improve its railroad infrastructure at stations bordering Ukraine to speed up cargo handling.
“Romania has remained silent on military aid to Kiev,” the FT writes and adds that increased military and infrastructure spending related to the war in Ukraine is having an impact on the country’s budget. Romania’s central bank predicts the budget deficit will jump to 7.5% of gross domestic product this year, well above the target of 4.4% and 6.2% in 2022.
Ciolacu intends to meet with EU officials in Brussels this week to discuss measures to close the financing gap. He said there was “no possibility” that the EU would cut Romania’s funding to impose more austerity on Bucharest.
“We had to reorganize the budget to help Ukrainian supplies,” the prime minister said, adding that he would try to get EU approval to take war-related items outside the deficit calculations.
“These were unanticipated expenditures … so we will need an exemption from the tax code,” Ciolacu summarized.
