Poland and Ukraine Discuss Resuming Grain Transit

EUROPE – Poland and Hungary imposed restrictions on certain imports from Ukraine on Saturday. Slovakia announced on Monday that it would follow suit, and other Central and Eastern European countries indicated they were also considering similar measures. Black Sea ports were blocked following Russia’s invasion of Ukraine in February, causing logistical difficulties and immobilizing significant quantities of cheaper Ukrainian grain – compared to those produced in the European Union – in Central European countries.

Polish and Ukrainian agriculture officials meet in Warsaw to discuss lifting the embargo on grain imports from Ukraine. This image was generated by an artificial intelligence for illustration purposes. © Fernand1521 / Midjourney

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Published on April 17, 2023 – 18:24 GMT +02:00

Local producers argue that this has led to lower prices and reduced sales. Governments, under pressure to act, have sought a response from the European Union. In Poland, this issue has created a problem in an election year for the ruling nationalist party, Law and Justice (PiS), which relies on rural areas for high support.

Grain Transit and Impact on Ukrainian Economy

Ukrainian Agriculture Minister Mykola Solsky said ahead of the planned talks in Warsaw: “The first step, in our opinion, should be the resumption of transit, as it is very important and should be done without condition, and then we will address other issues.” About 10% of food products exported by Ukraine pass through the Polish border, Solsky said in comments published on the Telegram messaging app by the Ukrainian Agriculture Ministry. Shipments to Hungary accounted for about 6% of Ukraine’s agricultural exports.

To prevent the entry of grain into the Polish market, Warsaw’s ban also encompassed transit through the country, which imported 2.45 million tons of grain, or three-quarters of total imports, from Ukraine in 2022, according to data from the Polish Agriculture Ministry.

Call for a European Solution

Istvan Nagy, Hungarian Agriculture Minister, said a solution was needed beyond the national level, calling any EU measures inevitable. The Czech Republic also called for an EU-wide solution, while stating it would not introduce a ban itself for now.

The Prime Ministers of Bulgaria, Hungary, Poland, Romania, and Slovakia raised the issue in a letter to the European Commission last month. They said tariffs on Ukrainian imports should be considered, and states also requested an EU purchasing mechanism to buy cheap grain.

“The ultimate goal is not for the import embargo to remain in force indefinitely, but to ensure that grain from Ukraine, which needs to be exported, goes (where it is intended),” Polish Deputy Foreign Minister Pawel Jablonski told RMF radio station.

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

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