EU lifts restrictions on Ukrainian grain exports. Several countries to extend embargo

The statement on the website of the European Commission said that exports ban was lifted. 

It is noted that the European Commission, after analyzing data on the impact of exports of 4 categories of Ukrainian agricultural products on the EU market, concluded that "market distortions in 5 member states bordering Ukraine have disappeared." This became possible due to the work of the Coordination Platform and the temporary measures introduced on May 2. 

"A constructive attitude of all participants in the platform helped to solve concrete problems and ensured that exports to third countries outside the EU are flowing and even increasing," the statement said. 

The EU stated that Ukraine has agreed to introduce measures within 30 days that will help avoid grain price spikes, such as an export licensing system. 

By that time, on September 16, Ukraine must introduce effective export controls for 4 groups of goods to prevent any market distortions in neighboring countries. 

"The European Commission and Ukraine will monitor the situation via the platform to be able to react to any unforeseen situations. The European Commission will refrain from imposing any restrictions as long as the effective measures by Ukraine are in place and fully working," the European Commission stated.

Ukraine's reaction 

President of Ukraine Volodymyr Zelenskyy thanked European Commission President Ursula von der Leyen for "keeping her word and the rules of the free market." He emphasized that the EC's refusal to extend the ban on Ukrainian grain exports is an example of unity and trust between Ukraine and the EU. 

"Now it is important that European unity works at the bilateral level. We need our neighbors to support Ukraine in times of war. And if their decisions violate EU law, Ukraine will respond in a civilized manner," the President added. 

The Prime Minister of Ukraine Denys Shmyhal noted that such a decision would not only help Ukrainian exports and the economy in the face of the blockade of Black Sea ports, but would also contribute to global food security. 

"We call on individual EU member states to refrain from unlawful unilateral restrictions on Ukrainian agricultural products. After all, such restrictions may become subject to arbitration within the WTO," Shmyhal said. 

The Prime Minister added that Ukraine is ready to engage in a dialogue with neighboring countries and the European Commission on trade and logistics.

Countries that have announced the extension of the embargo

Polish Prime Minister Mateusz Morawiecki said that despite the European Commission's decision, the country will extend the embargo unilaterally to support the interests of Polish farmers, niezalezna reports. 

"This is a bittersweet gift. I would have preferred them to extend the ban, but they didn't. Do you know what we will do now?  We will continue this ban, despite their disagreement, despite the disagreement of the EC. We will extend the ban on imports of Ukrainian grain," he said. 

Following Poland, Hungary imposed a ban on the import of agricultural products. This was announced by the Minister of Agriculture Istvan Nagy.

"Hungary is closing its borders to 24 Ukrainian goods that are under national jurisdiction. We are protecting the interests of Hungarian farmers," he wrote. 

Later, it was reported that the Slovak government had also decided to ban imports of four goods from Ukraine at the national level: the ban will be in effect until the end of the year for wheat, corn, rapeseed, and sunflower. A spokesman for the Slovak prime minister said this in a comment to the TASR news agency.

The Romanian government regretted the decision not to extend the restrictions on grain imports from Ukraine. They added that they expect Ukraine to present an action plan "on effective export control measures to prevent deformation of the grain market in the country." Kyiv pledged to present this plan by the end of Monday, September 18.

"Depending on the action plan presented by the Ukrainian side, the Romanian government will take appropriate measures to protect Romanian farmers," the statement said. - "The Romanian government is in constant contact with the European Commission and the Ukrainian side to ensure that the new mechanism for limiting the impact of imports of Ukrainian products proposed by the EC will prevent distortion of the markets of the EU member states that have been protected. preventive measures to limit imports from Ukraine.

More details regarding ban on Ukraine grain imports

On February 2, Polish farmers began blocking checkpoints on the border with Ukraine. They were outraged that the uncontrolled inflow of Ukrainian grain to Poland had caused prices for their products to plummet. Local farmers argue that Ukrainian grain should have been transported through Poland only to ports, but it ended up on the Polish market. 

On February 16 and 17, Polish farmers resumed protests on the border with Ukraine.

On March 29, Polish Prime Minister Morawiecki said that Poland promised to introduce rules that would limit the inflow of Ukrainian grain to the country, explaining that it could destabilize the import market.

On April 7, Ukraine agreed to stop exporting grain to Poland, and on April 15, the country approved a ban on the import of Ukrainian grain and other food products to Poland.

Later, оn April 15, Poland approved a ban on the import of Ukrainian grain and other food products to Poland. The government emphasized that this decision does not change the country's position on support and friendship with Ukraine.

In Romania, farmers are demanding a ban on grain imports and transit from Ukraine, threatening a nationwide protest.

On April 16, media reported that Bulgaria was also considering refusing to import Ukrainian grain, after Hungary and Poland had already made this decision.

On the same day, a spokesman for the European Commission said that unilateral actions by EU member states on trade were unacceptable.

On April 18, it became known that Poland would receive EUR 30 million in aid from the EU amid the crisis with Ukrainian grain. 

After that, Warsaw decided to unblock the transit of Ukrainian agricultural products to European ports on April 21.

Also on April 16, Ukraine's Minister of Agrarian Policy and Food Mykola Solskyi held an online meeting with Hungarian Minister of Agriculture Istvan Nagy, who assured him that Hungary would not stop the transit of Ukrainian grain.

On April 17, Slovakia became the third EU country to ban imports of Ukrainian grain and other agricultural products.

On April 19, Hungary banned the import of 25 types of agricultural products from Ukraine. The ban on the import of grain, flour, honey, oil and meat from Ukraine to Hungary will last until June 30 this year.

On April 29, the European Commission agreed with Bulgaria, Hungary, Poland, Romania, and Slovakia on the transit of food produced in Ukraine through their territory.

On May 12, Poland, Bulgaria, Romania, Slovakia, and Hungary called on the European Commission to extend the embargo on agricultural products from Ukraine until the end of the year.

In late May, it was reported that four EU countries would insist on extending grain import restrictions from Ukraine until October. At the same time, Hungary wants to extend the restrictions until 2024.  

Vitaliy Kulyk, Director of the Center for Researching Civil Society Problems, believes that Ukraine is responsible for the oversaturation of the Eastern European market with agricultural products.

On July 28, Romanian Foreign Minister Luminița Odobescu said that her country plays a significant role in the transit of grain and agricultural products from Ukraine. Almost 20 million tons have already transited through the country.

On August 4, Poland presented the EU with estimates of the investments needed to increase agricultural exports from Ukraine across the Polish-Ukrainian border to world markets.  

On August 24, it was revealed that Hungary requested an extension of the EU's ban on Ukrainian grain imports.

Following this, Poland's Minister of Agriculture, Robert Telus, stated that Poland would also urge the European Union to extend the ban on Ukrainian grain imports. If the EU refuses, Poland would consider implementing its own restrictions. He noted that Slovakia, Bulgaria, Romania, and Hungary had similar intentions.

In response, the Ukrainian Ministry of Foreign Affairs expressed its disapproval of the plans by Slovakia, Bulgaria, Poland, Romania, and Hungary to prolong the ban on Ukrainian grain imports until the end of 2023, deeming the actions of these five EU countries as unacceptable.

On September 13, Bulgaria's parliamentary committee on economic policy and innovation passed a draft decision indicating that the country does not support the continuation of the ban on certain Ukrainian agricultural product imports beyond September 15.