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Ukraine proposes temporary trade restrictions with EU, calls for Russian grain embargo

06.03.2024 12:30
Ukraine is willing to embrace temporary trade restrictions with the European Union to resolve a burgeoning political dispute with Poland, contingent upon the EU instituting an embargo on Russian grain imports, a Ukrainian official has stated.
Photo:
Photo:PAP/Alena Solomonova

This proposal was outlined by Ukrainian Deputy Economy Minister Taras Kachka in an interview with the Financial Times. Kachka emphasized the need for a controlled approach to trade flows between Ukraine and the EU during the transition period, stating: “Maybe for a transitional period this kind of [a] managed approach to trade flows between Ukraine and the EU is something that we all need”.

However, Kachka pointed to Russia as the root cause of the challenges faced by Polish farmers, not Ukraine. “For wheat, it is not Ukraine that is causing problems for Polish farmers, it is Russia”, Kachka explained.

The backdrop to these remarks involves the EU's decision to lift tariffs on Ukrainian imports following Russia's invasion of Ukraine two years ago. This policy shift led to an influx of Ukrainian grain into neighboring countries like Poland, triggering protests from local farmers against what they perceive as unfair competition. The situation prompted Poland's government to seek an exemption from EU trade rules to continue imposing restrictions on Ukrainian grain imports.

Kachka also accused Russia of exacerbating tensions, suggesting Moscow's involvement in incidents of vandalism against Ukrainian grain transports in Poland. “The Russians are involved in cases of vandalism or sabotage that can be treated as hostile towards Ukraine in general”, he stated, pointing to a broader campaign of disruption.

In a move to address EU concerns, Ukraine has agreed to support new measures proposed by Brussels, including import limits on eggs, poultry, and sugar from June, alongside provisions allowing individual countries to restrict Ukrainian grain imports while permitting transit to other nations.

Kiev also recently agreed to reroute corn exports to Italy and Spain via the Black Sea instead of overland through neighboring countries to reduce tensions. “We voluntarily stopped allowing the export of corn to all five neighbouring member states. Despite this, we exported another new record — 15m tonnes of corn in 2023. So we have big demand in other states. Ukraine filled gaps in EU production,” Kachka said.

However, the Financial Times notes, an EU-wide ban on Russian grain imports, as discussed by Kaczka, would be difficult to achieve, as several member states oppose such a move due to concerns that it would destabilize global markets. Russian grain exports to the EU have increased by more than 50 percent to 1.5 million tons in 2022-2023.

Ukrainian and Polish officials are set to meet again next Monday, with a view to resolving their dispute by the end of the month.

Source: PAP, Financial Times