Ukraine asks EU to help export over 30 million tons of agricultural products

Ukraine has proposed that the EU create a mechanism to support alternative logistics, as more than 30 million tons of agricultural products may remain unexported due to port restrictions.

This was stated by Minister of Agrarian Policy and Food Taras Vysotskyi during a visit to Brussels, Ukrinform writes.

According to him, Ukraine is asking the EU to allocate €1.1 billion to compensate for additional transportation costs when transporting agricultural products deep into the European Union and to remote European ports.

The additional cost of such logistics may reach €50 per ton. This is not about direct payments to Ukrainian farmers: European carriers and logistics companies may receive compensation.

According to the Ministry of Agrarian Policy, €1.1 billion in support will allow for an additional export of about 22 million tons of products and provide Ukrainian farmers with $7–8 billion in revenue.

Vysotsky noted that in general, exports of over 30 million tons of agricultural products with an estimated value of $10 billion are at risk. In such a scenario, Ukraine could lose up to 5% of GDP, and in the spring farmers would be forced to reduce sown areas by 35–40%.

Budget revenue losses could reach UAH 90 billion per year.

The minister stressed that alternative routes are not able to completely replace sea exports. In the first 20 days of September, Ukrainian agricultural exports amounted to about 44% of the potential volume, while in August this figure was about 30%.

Separately, Ukraine asks to ensure unhindered transit of agricultural products through the territory of the EU. According to Vysotskyi, it is transit, and not supplies to the domestic market of individual EU countries, that remains the main goal of the Ukrainian side.