Ukraine faces the task of exporting old crop stocks within the period of the Istanbul Agreement extension, until July 18. Exports through the western borders are currently insufficient. In addition, “Solidarity Ways” are also a subject to significant restrictions in practice.

This issue was stated by Denys Marchuk, Deputy Chairman of the UAC, during a briefing at Ukrinform on May 19:

"In recent months, increased attention has been focused on Russia's statements regarding the termination of the grain corridor on 60 days after the Istanbul arrangement. However, the Istanbul agreement will remain in force until July 18, i.e. 120 days, despite Russia's statements. Ukraine and its partners, the UN and Turkey, insisted that the agreement could not be changed while it was in effect.  Nevertheless, the grain corridor is operating with restrictions on ships entering and leaving the Black Sea. Russia has agreed to allow grain initiative vessels to enter only two ports - Odesa and Chornomorsk - and to ban traffic through the Pivdennyi port. Turkish ships will also be allowed to leave Mykolaiv, which have been there since last year, while other commercial ships will not be able to enter the port of Mykolaiv."

Ukraine has got 10 million tons of carry-over agricultural products, and the potential for harvesting a new grain crop is about 44 million tons of grain, of which 30 million tons is export potential, so it is important for Ukraine to be able to export both through the Black Sea and the western borders.

"April was the worst month for Ukrainian grain exports, with only 65 ships leaving Odesa. We continue negotiations on the “Solidarity Ways” despite certain restrictions: rapeseed, wheat, sunflower, and corn cannot be exported to Poland, Slovakia, Hungary, Bulgaria, and Romania. The relevant resolution is valid until June 5, but neighboring countries are already announcing further restrictions until the end of 2023. Unfortunately, we also see artificial inhibition of the transit of Ukrainian agricultural products, in particular on the borders with Poland. In this regard, the UAC, together with other associations, has already addressed the EU Ambassador to Ukraine.  Poland is trying to strengthen phytosanitary control contrary to the current regulations, as it does not apply to transit. This results in queues at the border and losses for Ukrainian producers," emphasized Denys Marchuk.

According to him, the losses of Ukrainian producers from the EU restrictions have already reached EUR 200 million.

"There is not much of an economic component to the ban on grain imports to the EU, the decisive factors are political ones, including the upcoming elections in Poland. It was this country that initiated the ban on imports of Ukrainian goods.  Currently, Poland is actively investigating imports of Ukrainian grain, and there is evidence to prove that there was no advantage of Ukrainian agricultural products. Polish companies purchased technical wheat from Ukraine. Later, this grain was processed into flour, which reduced purchases from Polish farmers. So Poland needs to put things in order inside the country. On the positive side, last week the EU voted in favor of a trade regime for Ukraine without duties and quotas. We hope that we will be able to restore full-fledged movement of agricultural products across the western borders," added Denys Marchuk.

Friday, 19 May 2023

 

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