Tensions on the Ukrainian-Polish border will continue for months to come for political reasons. But the governments of Ukraine and Poland are actively trying to find out a compromise. Will the decision of the EU Trade Committee on imports of agricultural products from Ukraine improve the situation? Denys Marchuk, the UAC Deputy Chairman, explains how the situation at the borders affects the agricultural sector and what challenges farmers face.

"Today, in the situation with the Poles, it is important to find a compromise. We see that two government teams are talking about licensing the export of certain products, which could ease the tension between Ukraine and Poland. But in general, the political factor will remain decisive: local elections in Poland, which will last until mid-April, and later the elections to the EU Parliament, will continue to negatively affect the situation on the border with Ukraine," Denys Marchuk believes.

The EU Trade Committee's proposals on the supply of agricultural products from Ukraine have not yet been adopted and may be unfavorable for Ukraine.

"The decisions proposed by the EU Trade Committee regarding supplies from Ukraine, in particular sugar, eggs and chicken, have been sent for finalization. One of the key issues in the negotiation process is whether these will be the volumes that Ukraine supplied to the EU in 2022-2023, when there were no quotas, or whether it will be a return to the 2021 supply volumes. Now the question is being raised that these will be the volumes of 2021, which is disadvantageous for Ukraine because there were many restrictions and quotas in place in 2021. If a compromise is reached on the volumes for 2022-2023 for the above-mentioned categories of goods, the Ukrainian side agreed to this a few weeks ago. The EU market is very important for us. Out of USD22 billion of Ukraine's foreign exchange earnings in 2023, about USD12 billion were funds received from trade with the EU," said the UAC Deputy Chairman.

Among the challenges of the agricultural sector, the issue of selling agricultural land remains relevant.

"One of the issues that Ukrainian farmers are raising today is the limits on land sales, which have been raised to 10,000 hectares since the beginning of 2024. In the absence of financing, large companies with access to foreign funds pose a threat to small and medium-sized businesses. Therefore, we ask the authorities to leave the 100-hectare limit in place for the duration of the war. Otherwise, in the conditions of occupation, mining, mobilization of a significant part of workers, and mobilization of producers themselves, there is a risk that small and medium-sized agricultural enterprises will cease their business activities. Ukraine cannot allow this during the war," said Denys Marchuk.