The EU is preparing emergency restrictions on the import of grain from Ukraine – FT

Brussels is preparing emergency restrictions on Ukrainian grain imports to five EU member states, bowing to pressure from Poland and Hungary after they unilaterally banned imports to appease local farmers.

As “European Truth” reports, the Financial Times writes about this with reference to the information of high-ranking EU officials.

According to the publication, the steps under discussion will ban the import of grain products to Poland, Hungary, Romania, Slovakia, which borders Ukraine, as well as to Bulgaria, with the exception of re-export to other EU member states or other parts of the world. The ban will be in effect until June.

The European Commission announced the day before that they plan to take “preventive measures” regarding Ukrainian agricultural products, but did not specify specific steps.

The commission said it would take action only if if governments lift their current bans, which they have not yet agreed to. To do so, it will use rarely used powers contained in the law that liberalized trade with Ukraine and limit the new safeguards to just a few member states, not the entire bloc.

These countries will also receive 100 million euros from EU funds to compensate farmers for losses.

A significant part of the Ukrainian grain entering the EU remained in Ukraine’s neighboring countries and reduced prices on the domestic market. The EU wants to extend the wartime trade regime with Ukraine when it expires in June, but the revised version would have stronger provisions that would allow the EU to take steps more quickly to “protect” its own market in the future.

Brussels will organize convoys of trucks, trains and barges to transport the grain to ports where it can be shipped to countries that need it, another official said. It will also increase the capacity of the Danube River.

Many commercial traders refuse to pay for this transport because it is more expensive than the traditional maritime trade across the Black Sea.

It remains unclear how it will be financed and organized. According to a European official, Spain tried to subsidize a train to transport grain across the continent, but it was much cheaper to import grain from Latin America.

In recent days, Poland, Hungary and Slovakia banned the import of Ukrainian agricultural products, in Romania appeals are heard before that because of the damage to local farmers due to lower prices of Ukrainian products.

On Tuesday, Ukraine reached an agreement with Poland about unblocking the transit of their grain.

See details about why friendly Poland hit Ukrainian exports and who will help Ukraine.