Five EU states push for extension of ban on Ukrainian grain

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On Wednesday, Poland and four other EU member states urged Brussels to extend trade restrictions on Ukrainian grain in response to concerns over Russia’s blockade of Black Sea shipments and its potential impact on their domestic markets.

Facing protests from their farmers due to a grain surplus and falling cereal prices blamed on Ukrainian imports, Poland, Hungary, Slovakia, Bulgaria, and Romania had previously imposed restrictions on Ukrainian grain imports. However, Brussels intervened and convinced them to drop these measures, providing €100 million in compensation. It was agreed that Ukrainian shipments would only pass through these countries on their way to other destinations.

For Poland, this situation has led to an unexpected turn of events. Despite being a strong supporter of Ukraine in its conflict with Russia, the right-wing government in Warsaw is now concerned about losing support from farmers, who are a key component of their electorate.

The demand for an extension of trade restrictions beyond mid-September is likely to face opposition. Other member states, already affected by sanctions against Russia, are not pleased with Poland and others seeking special treatment.

One diplomat remarked, “The initial grain blockade was just the beginning. By accommodating the demands of these countries, the Commission has made it more difficult to address further escalations by Poland.”

However, Polish Prime Minister Mateusz Morawiecki warned the European Commission against interfering with the agreement reached by the five countries, stating, “Either the European Commission will agree to develop common regulations that extend this ban, or we will do it ourselves. We will vigorously defend Polish farmers.”

With Russia’s decision to terminate its Black Sea grain deal, Ukraine faces additional pressure to find alternative export routes for its large cereal output. The EU and the US have criticized Russia’s move as a dangerous decision that threatens global food security, particularly in economically disadvantaged countries in the southern hemisphere.

Close proximity to Ukraine has led Poland and other EU countries to raise doubts about the EU’s ability to ensure that Ukrainian food exports are directed towards Africa and the Middle East instead of flooding domestic markets.

Since May, Polish farmers have been urging the government to extend trade restrictions to include strawberries and other seasonal food items that are cheaper to produce in Ukraine and have caused price reductions in the EU.

The five countries are also advocating for greater flexibility within the EU, allowing individual member states to expand the list of banned Ukrainian exports. They plan to raise these concerns at an upcoming meeting of agricultural ministers in Brussels and propose extending the cereal restrictions until the end of the year.

An EU official stated that the border states still hold “significant stocks” of Ukrainian grain and that the “solidarity lane” scheme introduced in May is helping improve the situation.

During a recent meeting of member states, several countries expressed concerns about the impact of Ukrainian imports on their farmers, particularly with significant imports of poultry and eggs leading to price reductions.

A spokesperson for the European Commission mentioned ongoing efforts to address logistical challenges and increase the capacity of the solidarity lanes in collaboration with the five border member states, Ukraine, and Moldova.