The European Commission considers the decision to ban grain imports from Ukraine unacceptable

The European Commission called unacceptable unilateral actions of EU member states in relation to trade, reported Reuters agency with reference to the statement of the representative of the EC. It was made after Poland and Hungary imposed temporary restrictions on the import of Ukrainian agricultural products to protect the local agricultural sector.

“We are aware of the announcements by Poland and Hungary regarding a ban on the import of grain and other agricultural products from Ukraine,” the spokesman said in an emailed statement. “In this context, it is important to emphasize that trade policy is within the exclusive competence of the EU and therefore unilateral action is unacceptable.” The representative of the EC also stressed that “in such difficult times it is extremely important to coordinate and harmonize all decisions within the EU.”

January 30 on the website of the Council of Europe was published a report prepared by Poland, which stated that the sharp increase in the supply of Ukrainian grain to the EU markets could lead to serious difficulties for European agricultural producers, especially in countries neighboring Ukraine. It was placed also on behalf of Bulgaria, the Czech Republic, Hungary, Romania and Slovakia. According to the report, over the 11 months of 2022, imports of Ukrainian corn to the EU increased by 75%, wheat – by 10 times, and sunflower – by 70 times, which led to overcrowding of warehouses and difficulties for local producers. March 23 Polish Radio RMF reported about the protests of farmers in the Polish city of Szczecin. They demanded a settlement of the issue of Ukrainian grain and a meeting with the prime minister of the republic, Mateusz Morawiecki, and the minister of agriculture, Henryk Kowalczyk.

On March 31, the Prime Ministers of Poland, Romania, Hungary, Bulgaria and Slovakia appealed to the President of the European Commission, Ursula von der Leyen, with a request to intervene in the crisis caused by the influx of Ukrainian grain. On April 3, the leaderships of Poland, Bulgaria, Hungary, Romania and Slovakia proposed to increase the size of European compensation funds for farmers, create the possibility of using these funds to redirect Ukrainian exports to Africa and the Middle East, and return customs duties on grain imports. But the European Commission extended the duty-free import of Ukrainian grains to the EU until June 2024.

Referring to this decision of the EC, on April 5, Polish Minister of Agriculture Henryk Kowalczyk gone resign.

On April 15, the Polish government authorized the Minister of Agriculture and Rural Development, the Minister of Development and Technology prepare legislative acts to protect local farmers and agricultural producers, including a temporary ban on imports of products from Ukraine. On the same day in the Legislative Gazette it was published order of the Ministry of Development and Technology of Poland on limiting the import of agricultural products from Ukraine until June 30, 2023. The temporary ban will apply to grain, vegetables and fruits, seeds, eggs, meat and milk and dairy products, etc. Hungary made a similar decision. “The government is committed to defending the interests of the Hungarian farming community, therefore, in the absence of significant EU measures, it temporarily, like Poland, prohibits the import of grain and oilseeds, as well as a number of other agricultural products produced in Ukraine or coming from there to Hungary,” said the Minister of Agriculture economy of Hungary Istvan Nagy (quote according to RIA Novosti).

Minister of Development and Technology of Poland Waldemar Buda on his Twitter explainedthat the ban will also apply to transit through the country. He added that the issue of transit will be discussed with Ukraine – his condition will be guarantees that the goods will only be transported through the territory of the country, and will not remain in it.

In Europe, there is an overabundance of agricultural crops imported from Ukraine outside the EU rules, which leads to dissatisfaction with local farmers, Arkady Zlochevsky, president of the Russian Grain Union, confirmed earlier to Vedomosti. “The main Ukrainian crop supplied to Europe is fodder corn. In fact, there is dumping – corn goes through Hungary, Poland, Bulgaria. Dealers and speculators take exactly Ukrainian – according to the terms of the deal, she was given the green light, she is outside the EU duties, rules and quotas, therefore much cheaper than local ones, which infringes on Eastern European farmers, ”he said.

At the same time, on May 18, the grain deal, which provides for the export of Ukrainian grain through the Black Sea, ends. The deal was concluded in the summer of 2022 and was last extended on March 14 for 60 days. Russia does not see an opportunity to extend it, since the agreements serve exclusively commercial exports of Ukraine from its southern ports in the interests of Western countries, the Russian Foreign Ministry reported.