Eastern European Nations Reinstate Grain Import Restrictions on Ukraine Amid EU Ban Expiry

Eastern European Nations Reinstate Grain Import Restrictions on Ukraine Amid EU Ban Expiry

BRUSSELS/WARSAW - Poland, Slovakia, and Hungary have decided to reintroduce restrictions on the import of Ukrainian grain, as the European Union's ban on such imports into Ukraine's neighboring countries has come to an end. This move follows the disruption of Ukraine's grain exports due to Russia's invasion in 2022. Ukrainian farmers have been compelled to rely on exports through neighboring nations since their preferred routes via Black Sea ports were affected.

The increased flow of grains and oilseeds into neighboring countries led to lower prices, impacting the income of local farmers and prompting governments to enforce bans on agricultural imports from Ukraine. While the EU initially intervened to prevent individual countries from imposing unilateral bans, the ban has now expired after Ukraine committed to tightening its export controls.

Despite the EU Trade Commissioner Valdis Dombrovskis' call for refraining from unilateral actions, Poland, Slovakia, and Hungary have chosen to reimpose their own restrictions. Importantly, they will still allow the transit of Ukrainian agricultural produce.

These bans encompass a range of cereals and related products, including corn, wheat, and rapeseed. Ukrainian President Volodymyr Zelenskiy welcomed the EU's decision not to extend the ban, but he emphasized that his government would respond in a civilized manner if EU member states violate EU rules.

To address the challenges posed by disrupted Black Sea routes, the EU had created "Solidarity Lanes" as alternative land routes for Ukraine to export its grains and oilseeds. The EU Commission justified the decision not to extend the ban by citing the disappearance of market supply distortions and stated that restrictions would not be imposed as long as Ukraine effectively manages its exports.

Farmers in neighboring countries have repeatedly expressed concerns about excessive product supplies affecting domestic prices and pushing them toward financial instability. While most neighboring countries advocated for an extension of the EU ban, Bulgaria voted to remove it.

Romania, which had refrained from imposing a unilateral ban before May, expressed regret that a European solution to extend the ban was not reached. Romania now awaits Ukraine's plan to prevent export surges before deciding how to safeguard its own farmers, as it plays a crucial role in facilitating alternate export routes, particularly via the Danube.

In the past year, Ukraine had been utilizing the Solidarity Lanes for 60% of its exports and relied on the Black Sea for the remaining 40%. However, this balance was disrupted by Russian drone attacks on Ukraine's grain infrastructure along the Danube and near the Romanian border.

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