EU cautions against unilateral steps after Poland, Hungary ban Ukrainian grain

A worker loads a truck with grain at a terminal during barley harvesting in Odesa region, Ukraine June 23, 2022. REUTERS/Igor Tkachenko

The European Union's executive has disapproved of the recent trade measures by member states Poland and Hungary. The two countries have banned importing grain and other food products from Ukraine, citing the need to safeguard their domestic agricultural industries. The EU has deemed such unilateral actions unacceptable.

The recent invasion by Russia has resulted in the blockage of several Black Sea ports. Consequently, Ukrainian grain, which is comparatively cheaper than that produced in the European Union, has been unable to reach its intended destinations in Central European states due to logistical bottlenecks. This has significantly impacted the prices and sales of local farmers, who have been adversely affected by this situation.

Poland's ruling nationalist Law and Justice (PiS) party faces a political predicament in an election year due to a contentious issue that has stirred up resentment among residents in rural areas, who typically strongly support the party.

In an emailed statement, a representative of the European Commission acknowledged Poland and Hungary's recent declarations of prohibiting the importation of grain and other agricultural goods from Ukraine.

It is noteworthy to emphasize that the trade policy falls under the exclusive competence of the EU. Consequently, any unilateral actions are deemed unacceptable.

According to the statement, ensuring that all EU decisions are appropriately coordinated and aligned amidst these challenging times is of utmost importance.

According to a statement made by Polish government spokesman Piotr Muller to state-run news agency PAP, the government is reportedly maintaining regular communication with the European Commission regarding the matter. Muller further indicated that the ban was made feasible by a security clause.

The ongoing disputes between Poland, Hungary, and Brussels have been centred around several issues, including judicial independence, media freedoms, and LGBT rights. As a result of concerns over the rule of law, both countries have had funds withheld.

In a recent development, Ukraine's farm minister, Mykola Solsky, talked with his Hungarian counterpart, Istvan Nagy, on Sunday. As per the Ukrainian farm ministry's statement, Solsky emphasized that unilateral decisions would be unacceptable. According to sources, the two parties have reportedly agreed to engage in further discussions shortly.

On Saturday, the ministry reported that the Polish ban contradicted existing bilateral agreements on exports and urged negotiations to resolve the matter.

According to a report by local agency BTA on Sunday, Bulgaria's Agriculture Minister Yavor Gechev stated that the country is contemplating a prohibition on importing Ukrainian grain.

Transit

In a recent announcement, the Development and Technology Minister confirmed that the Polish ban on certain products had been implemented since Saturday evening. The ban will restrict not only the sale of these products and their transit through the country.

According to a recent tweet by Waldemar Buda, the ban on transit through Poland has been implemented in full. Buda further stated that discussions with Ukraine are underway to establish a mechanism that guarantees the passage of goods solely through Poland, without any spillage into the local market.

According to the state-run Ukrinform news agency, Ukrainian and Polish ministers are scheduled to convene on Monday in Poland to discuss the transit arrangement.

In a statement on Sunday, Poland's Agriculture Minister Robert Telus asserted that the ban was a crucial step towards drawing attention to the need for additional measures that would enable products from Ukraine to penetrate deeper into Europe rather than being confined to Poland.

According to the finance ministry, the ban is set to remain in effect until June 30.

Per an agreement between Ukraine, Turkey, Russia, and the United Nations, the Black Sea ports of Ukraine were unblocked in July. As a result, Ukraine has resumed exporting most of its agricultural products, particularly grain, through these ports.

The accord, set to expire on May 18, is under scrutiny as Moscow has hinted that it may not extend the agreement. The extension is contingent upon the West's removal of obstacles to the export of Russian grain and fertilizer, as indicated by Moscow last week.

According to the Ukrainian Ministry, the Black Sea grain corridor sees approximately 3 million tonnes of grain leaving Ukraine each month. In comparison, only up to 200,000 tonnes are transported to European ports through Polish territory.

According to Solsky's statement over the weekend, a monthly average of 500,000 to 700,000 tonnes of diverse agricultural commodities, such as grain, vegetable oil, sugar, eggs, and meat, are transported across the Polish border.

Publish : 2023-04-17 10:45:00

Give Your Comments