EU Temporarily Blocks Import of Ukrainian Grains, Seeds to Five Member States
(MENAFN) The European Union has temporarily blocked the import of Ukrainian wheat, maize, rapeseed, and sunflower seed to five of its member states in order to alleviate logistical bottlenecks in Bulgaria, Hungary, Poland, Romania, and Slovakia. The European Union regulation supersedes the state-level bans enacted by some of those governments, and the measure is scheduled to expire on June 5, unless it is extended. However, Kiev can still use a common customs transit procedure to export the grain and seed-oil components to other European Union member states or outside the bloc, but cannot sell them to the five "frontline" countries.
Sofia, Budapest, Warsaw, and Bratislava have committed to lifting their unilateral measures on the four items "and any other products coming from Ukraine," according to the Commission. In return, the European Union will provide financial support to their farmers. Although no specific amount was mentioned in Tuesday evening's statement, media reports last week spoke of a euro100 million (USD110 million) package.
The Commission explained that the measure was enacted to address the concerns of farmers in the five border countries, while also upholding the EU's "strong commitment to support Ukraine and preserve its capabilities to export its grains." These grains are described as "critical to feed the world and keep food prices down" in the face of "Russian aggression."
This decision is likely to have a significant impact on Ukraine's agricultural exports, which are a vital source of revenue for the country. According to data from the State Fiscal Service of Ukraine, the country exported USD2.3 billion worth of agricultural products in April 2020 alone. The temporary import ban could cause significant financial losses for Ukrainian farmers, who are already facing the economic fallout of the COVID-19 pandemic.
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