EU Finds Alternative to Black Sea Grain Exports from Ukraine

The EU's "lanes of solidarity" initiative for exporting Ukrainian grain through European routes may replace the Black Sea route following Russia's unilateral exit from the UN-mediated agreement, said Janusz Wojciechowski, the Commissioner for Agriculture.

Euractiv reported this.

Last week, Russia suspended its participation in the Black Sea Grain Initiative, supported by the UN, which facilitated the safe passage of 32 million tons of Ukrainian grain through the Black Sea last year.

The situation was discussed by the EU-27 agriculture ministers during their monthly meeting in Brussels.

According to Luis Planas, the EU Council President for Agriculture and Spain's Minister of Agriculture, Russia's refusal to extend the Black Sea grain agreement "certainly complicates the situation for markets, especially for those highly dependent on Ukrainian exports, such as Africa, Asia, and Latin America."

However, as per Janusz Wojciechowski, the EU's Commissioner for Agriculture, the solution lies in the corridors of solidarity. "We are ready to export practically everything that Ukraine needs through these lanes," said the Commissioner.

Since their launch in May 2023, the solidarity corridors have exported 37.4 million tons of grain, oil, and other food products from Ukraine, accounting for 55% of the total food exports.

According to EU data, the solidarity lanes have also enabled Ukraine to export 37.6 million tons of non-agricultural goods and receive humanitarian aid.

Wojciechowski stated that Ukraine's grain export needs would amount to about 4 million tons per month. "We achieved this before," he said, adding that almost 4 million tons of Ukrainian grain and oilseeds were exported in November 2022, representing 60% of Ukraine's exports at that time.

The Commissioner also assured EU ministers that the bloc has the material and technical potential to help Ukraine replace the Black Sea route.

However, the increase in imports of grain and oilseeds from Ukraine through the solidarity corridors has raised concerns among European farmers who warned that large volumes of grain were being stuck in border regions, displacing local producers from the market.

The Commission has already proposed support packages to compensate farmers in EU member states bordering Ukraine, including Bulgaria, Hungary, Poland, Romania, and Slovakia, to help overcome the logistical bottlenecks caused by the initiative's success.

"We absolutely need to improve and strengthen the solidarity lanes, of course without disrupting the markets of European countries bordering Ukraine, as well as Moldova, which has a very sensitive position," said Planas.

During the Council meeting, Commissioner Wojciechowski met with ministers from five member states who raised concerns about additional transit costs that make goods exported through the solidarity lanes uncompetitive on the global market.

"It would be cheaper to buy grain from Russia than to pay for grain from Ukraine transported through Poland or Baltic ports," he explained, adding that there are no additional costs for agricultural products from Russia, as food products are excluded from the sanctions list.

Therefore, Wojciechowski is considering some form of state support to cover the additional transit costs of these goods and will present the proposal to his fellow commissioners on how EU funds can cover it.

However, no decisions have been made yet. "For now, this is just my position," Wojciechowski told journalists, adding that while this is a relevant issue, there are no timelines for presenting such a proposal.

According to EU sources, the financial coverage for this proposal may come from the budget of the European Commission's Transport Service.