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BackUkraine wants to increase export quotas to the EU, Brussels refuses
Ukraine wants to increase export quotas to the EU, Brussels refuses
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RMF244 hours agoBusiness2 min readView original

Ukraine wants to increase export quotas to the EU, Brussels refuses

Quick Look

  • For several weeks, Ukraine has been trying to increase export quotas for agricultural products such as wheat, sugar, bioethanol and starch, arguing the need for access to the EU market due to Russian attacks on ports.
  • The European Commission refused, saying the current limits were fair and balanced, fearing agricultural protests in Poland.
  • Ukraine is now proposing to simplify the rules for using quotas and demanding EUR 1.1 billion to cover transport costs following the attacks on ports.

AI-generated summary

Why It Matters

After Russia's invasion of Ukraine in 2022, the EU granted Ukraine temporary access to its agricultural market, which sparked protests from Polish farmers fearing competition. Currently, Ukraine wants to increase export quotas due to the destruction of ports by Russia, while Poland maintains an embargo on the import of Ukrainian grain.

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Ukraine wanted larger limits

Kyiv has been trying to increase the quotas for several weeks, including: for wheat, sugar, bioethanol, ethanol and starch products, i.e. goods that are particularly sensitive to Polish agriculture. There are no plans for talks with Ukrainian partners regarding the renegotiation of export quotas, the European Commission spokesman told RMF FM.

The most specific is the case of bioethanol and ethanol. An EC spokesman confirmed to RMF FM that the current quota is 125,000 tons per year. Ukraine already informed in August that it had used over 100,000 tons and was seeking to increase the limit. Kiev argues that it needs greater access to the EU market because Russian attacks on ports hamper exports to other markets.

Brussels says no

The EC spokesman explains that the revised EU-Ukraine trade agreement provides stable, mutual and predictable trade conditions. He also refers to data which, according to the EC, confirm that the current quotas are "fair and balanced".

Brussels has changed its approach

This is a change compared to the period when, after the Russian invasion, Ukrainian products had much wider access to the EU market. The inflow of Ukrainian grain triggered mass protests by farmers in Poland in 2022–2023. At that time, the head of the European Commission, Ursula von der Leyen, was very supportive of Ukraine, also in trade matters, while Warsaw raised alarms about the effects of imports on Polish farmers. The European Commission did not understand the situation of Polish farmers for a long time. Today the situation is different. For fear of another wave of agricultural protests and anti-Ukrainian sentiments, Brussels does not intend to yield to Kiev in increasing the quotas. Poland still maintains an embargo on the import of Ukrainian grain.

Ukraine is looking for a different path

However, Ukraine does not give up efforts to obtain easier access to the EU market and is trying to save its exports. Meeting with the refusal to increase the quotas, Kiev, during a meeting with Commissioner Christoph Hansen on September 29 in Brussels, proposed simplifying the rules for using part of the quotas and more flexible mechanisms for bioethanol and starch. In practice, this is intended to make it easier for Ukrainian companies to use the available quotas.

Ukraine is asking for money

Kyiv is not giving up the fight for money. He did not receive the non-refundable, extraordinary support of EUR 220 million for Ukrainian farmers, which he applied for during the holidays. The application was rejected. Brussels argues that Ukrainian farmers already benefit from existing EU support programs, including loan subsidies.

Now Ukraine is asking for much more. It wants 1.1 billion euros to cover additional costs of transporting agricultural products after Russian attacks on Ukrainian ports. Brussels is not making any promises of money for now and is being cautious. Talks on this matter were confirmed by Louise Bogey, spokeswoman for the Agriculture Committee.

What to Watch

AI outlook — possibilities, not facts

  • Ukraine will continue negotiations with the EU on simplifying the rules for using existing export quotas.

    Likely · Within weeks

  • Poland will maintain an embargo on imports of Ukrainian grain in the coming months due to fears of agricultural protests.

    Very likely · Within months

Open Questions

  • Will Ukraine receive any financial support for the transport of agricultural products?
  • How long will Poland maintain the embargo on the import of Ukrainian grain?
  • Will the European Commission change its position in the face of the escalating humanitarian crisis in Ukraine?

Related Topics

This article was originally published by RMF24.

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