EU mulls subsidizing Ukraine's grain exports

By Agnes Szucs

BRUSSELS (AA) – The European Union plans to subsidize the export of Ukrainian agricultural products to compensate for rising prices after Russia’s withdrawal from the Black Sea grain deal, an EU commissioner said Thursday.

EU Commissioner for Agriculture Janusz Wojciechowski briefed EU lawmakers on the executive body’s response to recent developments on the international grain market at a hearing at the European Parliament’s Agricultural and Rural Development Committee.

He said he is working on a proposal that would support the export of Ukrainian agricultural products that “needs to find the global markets, the global outlets” despite the rising costs of transit.

Wojciechowski also said the cost of transporting Ukrainian grain will grow after Moscow refused in July to extend the Black Sea grain deal and “Russia is trying to replace Ukraine on those markets.”

Under Wojciechowski’s plan, the EU would give an average subsidy of €30 ($33) per ton for Ukrainian products which “would be viable and cost-effective for potential buyers and purchases from outside Europe.”

“Depending on the destination, the price would range from €20 to €40 euro per ton,” he added.

According to the European Commission’s estimates, Ukraine is expected to produce 56 million tons of grain this year, and export an average of 4-5 million tons per month.

Sea shipments of Ukrainian grains are on hold after Russia withdrew from the Black Sea grain deal on July 17.

The deal, signed last July by Russia and Ukraine with the mediation of Türkiye and the UN, allowed the reopening of three Ukrainian ports for grain exports that had been blocked since the beginning of Russia’s war in Ukraine.

Until the end of May, over 30 million metric tons of grain and agricultural products have been moved to 45 countries under the deal, helping to bring down global food prices and stabilizing markets.