EU nations seek to end Ukraine farm import standoff amid Russia's war

Hoping to maintain a unified stance on Russia's war in Ukraine, the European Union looked for a way to satisfy the concerns of member nations facing a destabilizing glut of Ukrainian farm exports

European Union
European Union
AP Brussels
3 min read Last Updated : Apr 25 2023 | 8:52 PM IST

Hoping to maintain a unified stance on Russia's war in Ukraine, the European Union on Tuesday looked for a way to satisfy the concerns of member nations facing a destabilizing glut of Ukrainian farm exports.

The 27-nation EU lifted agricultural import restrictions last year to help Ukraine get its vast grain supplies to world markets amid a Russian blockade. Eastern European nations like Poland, Hungary, Bulgaria and Slovakia have since reported being flooded with imported products.

To protect their farmers, the countries unilaterally banned Ukrainian farm imports for their national markets. The moves went against the principle that the EU sets trade policy for all 27 nations and could give the impression that the bloc is fighting internally instead of facing Russia jointly.

We are really, really afraid of the consequences of these unilateral restrictions. And Finland sees that this restrictions can call into question unity in support of Ukraine, Finnish Agriculture and Forestry Minister Antti Kurvinen said.

Overall though, there was acceptance that the lifting of import tariffs had seriously skewed local markets in nations close to Ukraine. In Poland, wheat imports went from 2,375 tons in 2021 to 500,008 tons last year. Maize went from 5,863 tons to 1,840,670 tons over the same period.

Similar increases were seen in Hungary, Slovakia and Romania.

Agriculture ministers from throughout the EU met Tuesday to identify a compromise solution.

European Commission President Ursula von der Leyen wrote the leaders of Poland, Hungary, Romania, Slovakia and Bulgaria last week with a set of proposals that she said responds specifically to the concerns of front-line member states and stakeholders, including farmers, and will allow us to react even quicker in the future.

Von der Leyen's letter acknowledged the issues that farmers encountered after the EU lifted duties on Ukrainian grain to ease exports when Russia's naval blockade kept shipments from leaving Ukraine's Black Sea ports last year. Relaxing the tariffs led to unintended export surges and, as a result, lower prices that cut into farmers' incomes.

The European Commission's proposals build on an initial support package of 56.3 million euros for the most affected farmers with the possibility of a second package of 100 million euros.

Any EU solution would have to include the front-line countries retracting their import bans, officials said.

We need joint solidarity, and our stand in the markets must be a common one, French Minister of Agriculture and Food Sovereignty Marc Fesneau said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :European UnionUkraineRussia Ukraine Conflict

First Published: Apr 25 2023 | 8:52 PM IST

Next Story