Ukraine seeks re-opening of food and grain transit through Poland as “a first step” at talks in Warsaw

KYIV (The HQ News) 17 April, 2023 – Ukraine seeks re-opening of food and grain transit through Poland as “a first step” to ending import bans at talks that began in Warsaw on Monday as several EU countries halted grain from Ukraine to protect their local agriculture markets. The talks are likely to continue into Tuesday as per sources.

“The first step, in our opinion, should be the opening of transit, because it is quite important and it is the thing that should be done unconditionally and after that we will talk about other things,” Ukrainian Agriculture Minister Mykola Solsky said before talks in Warsaw.

Poland and Hungary announced bans on some imports from Ukraine on Saturday. Slovakia said on Monday it would do the same and other countries in central and eastern Europe said they were also considering action.

After Russia-Ukraine war began last february several Black Sea ports were blocked for Ukraine exports which further hit by logistical bottlenecks trapped large quantities of Ukrainian grain which are cheaper than that produced in the European Union and in Central European countries.

The European Union and Central European countries local farmers being aggrieved of the high production and low prices of Ukrainian food and grain commodities have started pressurizing their governments to ban imports from Ukraine as the Ukraine exports to and through these countries have lowered prices and reduced their sales.

Poland having entered in an election year and the ruling nationalist party i.e. “Law and Justice (PiS) party” which relies on rural areas for majority of its voter support has banned the imports and transit trade of grains from Ukraine.

The export and transit bans also come as a deal to allow the export of millions of tonnes of Ukrainian grain via the Black Sea despite the Ukraine war nears its May 18 expiry and Russian demands have left the prospect of an extension uncertain.

The dual impact of the bans and failure to agree an extension would strand millions of tonnes of grain inside Ukraine, a major agricultural producer that makes a substantial part of its gross domestic product from food sales.

To prevent any grain entering the Polish market, Warsaw’s ban also covered transit through the country, which imported 2.45 million tonnes of grain, or three quarters of total imports, from Ukraine in 2022, Polish Agriculture Ministry data showed.

“The ultimate goal is not that the import ban will be in force indefinitely, but to ensure that grain from Ukraine, which is to be exported, goes (where it is headed),” Polish Deputy Foreign Minister Pawel Jablonski told media.

Slovakia following Poland has also approved halting imports indefinitely, although it has not stopped transit.

Istvan Nagy, Hungary’s farm minister, said a solution was needed beyond the national level, calling eventual EU measures inevitable.

Bulgaria’s agriculture minister also said the country could limit imports from Ukraine, as per sources.

The Czech Republic also urged an EU-wide solution while saying it would not introduce a ban itself for now.

The prime ministers of Poland, Bulgaria, Hungary, Romania and Slovakia raised the issue in a letter to the European Commission last month. They demanded tariffs on Ukrainian imports should be considered and that an EU purchase mechanism to buy up cheap grain be established.

A senior EU official said EU envoys would discuss Poland and Hungary’s bans on Wednesday – after the bloc’s executive said on Sunday that unilateral action was unacceptable.

The official said low global prices and demand meant grain was staying in the bloc rather than being sold on.

Ukraine usually exports its agricultural goods, especially grain, via its Black Sea ports that were unblocked last July in line with an agreement between Russia, Turkey, Ukraine and the United Nations when the greatest pressure on governments was to lower prices to tackle inflation and offset possible food shortages.

Moscow said last week that accord may not be extended unless the West removes obstacles to the export of Russian grain and fertilisers.

On Monday, Ukraine said the Black Sea grain deal was in danger of a “shutdown” after Russia blocked inspections of participating ships in Turkish waters.