Economy

Ukraine Opposes Extension of European Restrictions on Its Agricultural Exports

Ukraine Opposes Extension of European Restrictions on Its Agricultural Exports

Ukraine announced today, Thursday, that any move by Eastern European countries to extend the restrictions imposed on its food exports, set to expire on September 15, would be illegal and harmful to shared economic interests. The restrictions, imposed by the European Union in May, allowed Poland, Bulgaria, Hungary, Romania, and Slovakia to prohibit Ukraine's sales of wheat, corn, rapeseed, and sunflower seeds, although these countries permitted shipments to pass through their territories for export to other locations. Farmers in Eastern European countries complained of an oversupply of grain leading to a collapse in local prices, attributing this to cheap Ukrainian imports.

Ukrainian Foreign Ministry spokesman Oleg Nikolenko wrote on Facebook: "We are convinced that any decision... that would increase restrictions on Ukrainian agricultural exports will be not only unjustified and illegal but will also harm the 'shared economic interests' of Ukraine and EU member states, as well as the bloc as a whole." Eastern European countries were not among the main importers of Ukrainian grain before the Russian invasion, but market movements changed after Russia effectively blockaded Ukraine's main export route via the Black Sea.

Poland, Hungary, Slovakia, and Romania are likely to extend the restrictions, while Bulgaria voted today to lift them.

*Gratitude to Bulgaria*

Earlier today, Ukrainian President Volodymyr Zelensky expressed gratitude to Bulgaria for not extending the restrictions on his country’s agricultural exports, stating on X (formerly Twitter): "Bulgaria provides an example of true solidarity." Poland, which will hold parliamentary elections on October 15, claims that cheap Ukrainian grain prices make local production unprofitable. It stated that it would not lift the ban even if the EU does not extend this arrangement this week. Slovakia's government also indicated it would maintain the ban, and Hungary seems prepared to do the same. Ukraine stated that it might seek international arbitration regarding the restrictions.

Ukraine is expected to harvest around 85 million tons of grains and oilseeds in 2023 and can export at least 50 million tons of this. Regardless of any regional restrictions, the passage of Ukrainian grain to ports on the Baltic and Mediterranean seas will not be affected.

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