European Union ends ban on shipments through neighbouring countries, but tensions rise as neighbours push back
BRUSSELS, Belgium — On Sept. 15, the European Commission, the executive arm of the European Union, decided not to extend a ban on Ukrainian grain imports — specifically wheat, corn, sunflower and rapeseed — that applied Ukraine’s neighbours; Poland, Hungary, Slovakia, Romania and Bulgaria.
One day later, however, Poland, Hungary and Slovakia took matters into their own hands by issuing their own bans on imports of Ukrainian grain and other goods, citing the need to protect their farmers from competition due to significantly increased Ukrainian imports.
Both Ukraine and the commission have called on the three to step back from their unilateral extensions of the embargo. The commission is analyzing the measures taken by the three EU states, according to a spokesperson.
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Kiev has since filed a complaint with the World Trade Organization against the three countries. EU Agriculture Commissioner Janusz Wojciechowski of Poland said he was “quite surprised that Ukraine chose this route” given that export volumes had risen sharply in recent months despite the restrictions.
“For us, it is important in principle to prove that individual member states cannot impose an import ban on Ukrainian goods,” Ukrainian Economics Minister Yulia Svyrydenko said in a statement. During a speech at the UN General Assembly, Ukrainian President Volodymyr Zelensky said the “political theatre” around grain imports would only help Moscow.
EU agriculture ministers held talks on Sept. 16 with some expressing dismay at the unilateral bans by Warsaw, Bratislava and Budapest — while others understood their decisions.
“I believe that it is not only an error but also contrary to (EU) community law and, evidently, to the principles of the single market, for any member state to adopt unilateral restrictive measures,” said Spanish Agricultural Minister Luis Planas, who chaired the meeting.
He pointed out that the 27 members of the EU have defended the need to preserve unity in defence of Ukraine in regard to “unilateral” bans on grain imports and that they have called for measures to be taken “with the consensus of all.”
Slovenian Agriculture Minister Irena Šinko also expressed concern about unilateral measures and seconded the importance of a united EU approach.
German Agriculture Minister Cem Özdemir criticized the move by Warsaw, Budapest and Bratislava as “part-time solidarity” with Ukraine. “I also don’t see how this can be brought into line with EU law,” he added, noting that according to his information, the market was handling Ukrainian grain well.
While his Austrian counterpart Norbert Totschnig called on the EU to ensure the workings of the single market, emphasizing solidarity with Ukraine, he also showed understanding for the neighbouring states.
The infrastructure should be expanded so that Ukrainian grain gets to where it is needed more — for example in countries of the Middle East and Africa, said Totschnig.
Ukraine, a major grain producer, is struggling to export food because of Russia’s blockade of its Black Sea ports, spurring global concerns over grain supplies. This has turned the EU into a major transit route and export destination for Ukrainian grain bound for Africa and the Middle East.
In mid-July, Russia abandoned the Black Sea grain deal, which had previously allowed Ukraine to export grain through the Black Sea ports, while upping attacks on Ukrainian export facilities.
The EU has bolstered other Solidarity Lanes, routes by land and river that have been used to export over 44 million tonnes of grain from Ukraine following the Russian invasion.
Croatian Prime Minister Andrej Plenkovic said it had been made clear to the Ukrainian leadership that Croatia would like to be a transit country and not a country flooded by cheap cereals that could cause trouble for local farmers.
Earlier this month, Ukrainian officials confirmed cereals were being dispatched via Croatian ports on the River Danube and Adriatic seaports.
The temporary EU grain import ban was introduced in April and extended in June until mid-September. Faced with a price slump in local markets and angry European farmers, the ban was adopted in response to logistical bottlenecks and accumulations of wheat, which were causing distortions in the markets of the five Eastern European countries.
According to the EU executive, these distortions have now “disappeared,” making the temporary restrictions “no longer necessary.”
The decision was taken after Kiev agreed to introduce measures such as an export licensing system within 30 days to “avoid grain surges,” the commission said.
Ukrainian Agriculture Minister Mykola Solskyi, who addressed his EU counterparts via video conference, said: “We believe that this action scheme will satisfy all parties. And that even those three countries that are currently opposing Ukrainian agricultural exports will also join the plan. Because we all have one goal, which is victory in this terrible war. And to this end, there must be mutual understanding and mutual support between us.”
After the EU ban expired, Hungary immediately announced it was going to close its border to 24 Ukrainian products, up from four previously.
Poland’s populist right-wing government of the Law and Justice party (PiS) followed suit by extending an embargo on Ukrainian grain. The issue is particularly sensitive ahead of elections next month as the government has strong support in farming regions, triggering a spat between Warsaw and Kiev.
“I warn the Ukrainian authorities: if the conflict escalates, we will add other products to the ban on imports into Polish territory,” said Polish Prime Minister Mateusz Morawiecki. He assured that Poland, a key ally of Ukraine, would continue to help its neighbour, but “not at the price of destabilizing the Polish market.”
Slovakia initially also announced that it would ban the import of four commodities, including wheat, until the end of the year.
“We will apply unilateral measures until the system of guarantees by Ukraine has been evaluated and there are guarantees that imports are under control,” said Slovak Agriculture Minister Jozef Bíreš.
He said the EU commission should have introduced a transition period to test if the system was effective and whether it would prevent uncontrolled imports, before lifting the embargo.
However, the minister pointed out that despite the new situation, support remained for Ukraine and the transit of its grain to world markets. On Sept. 21, Ukraine and Slovakia agreed on a licensing system for grain trade that will replace the ban as soon as it is set up. On Sept. 30, early parliamentary elections are scheduled to take place in Slovakia.
Bulgaria stands out from its regional neighbours: many of its sunflower oil producers complained of a serious shortage of seeds and high prices since the start of the embargo. However, farmers in the country are unhappy with their government’s decision to let the ban expire.
“Processing plants import cheaper grains from Ukraine, while our costs have tripled since the start of the war,” farmer Yasen Nakov said at a protest.
Farm organizations put out a list of five demands and on Sept. 20 the government agreed to ban the import of Ukrainian sunflower seeds until quotas are agreed.
The cabinet also agreed to several other measures:
- It plans to introduce a licensing regime for the import of wheat, corn and rapeseed.
- It said it will speed up farm subsidy payments.
- It said it intends to reduce the administrative burden on farmers.
In Romania, where the largest quantities of Ukrainian grain exports pass through, agricultural organizations have suspended protests for 30 days while Kiev implements the measures agreed with Brussels in return for lifting the import ban.
Agriculture Minister Florin Barbu has assured the farmers’ associations that nothing will be imported from Ukraine during this 30-day period.
Bucharest has agreed that grain import licences will only be given to Romanian farmers and processors. Without the necessary approvals, no grain can cross the border, the government has stressed.
If these requirements are not adhered to, Romania would also take the unilateral step of banning imports from Ukraine, while farmers have vowed that they would respond “with large-scale protests.”
