Brussels lifts the veto on Ukrainian grain from five eastern countries

The European Commission decided this Friday that it will lift the veto on the entry of wheat, corn, rapeseed and sunflower seeds from Ukraine, as was allowed to five European countries (Poland, Hungary, Slovakia, Romania and Bulgaria) last spring.

Oliver Thansan
Oliver Thansan
14 September 2023 Thursday 22:23
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Brussels lifts the veto on Ukrainian grain from five eastern countries

The European Commission decided this Friday that it will lift the veto on the entry of wheat, corn, rapeseed and sunflower seeds from Ukraine, as was allowed to five European countries (Poland, Hungary, Slovakia, Romania and Bulgaria) last spring.

As stated in a statement by the Executive, it has been concluded that the temporary measures introduced last May will expire this Friday at midnight since "the distortions in the markets of five Member States bordering Ukraine have disappeared." According to Brussels, the problems that had been encountered until now have been resolved and the export of grain to third countries has been allowed.

To avoid new problems in the future, Ukraine has committed to introducing “any legal measures” in the first 30 days from the implementation of the agreement and to avoid sudden increases in neighboring countries. Until then, the country will introduce export controls on wheat, corn, rapeseed and sunflower seeds to avoid “any market distortion in bordering Member States”. Likewise, Kyiv undertakes to present an action plan to the European platform that monitors Ukrainian imports and which brings together the European Commission, Ukraine and the five eastern countries.

In return, the European Commission has assured that it will not impose any restrictions on the entry of Ukrainian grain "as long as the measures applied by Ukraine are fully operational."

The European Commission decided to implement a plan to help Ukraine export its grain to Europe to other countries in the world, temporarily eliminating tariffs and taxes on Ukrainian exports. However, months later, several countries criticized the measure.

Brussels accepted the disbursement of 156 million euros in aid to compensate for the losses of farmers in the five Eastern European countries. However, the measure was considered insufficient. First it was Poland (with elections in October, the ultra-conservative government did not want to lose the farmers' vote pool) and then Hungary, Slovakia, Romania and Bulgaria decided unilaterally to close their borders to Ukrainian grain.

For this reason, last May Brussels accepted a temporary veto in these countries, in which the grain could transit through the countries, but not as a final destination. Now the restriction is lifted in an agreement that is expected to not lead to more headaches, especially because it put Brussels at a difficult crossroads between support for Kyiv and the revolt of several States.

Kyiv was waiting for such a signal from Brussels. In recent days, both the Ukrainian president, Volodimir Zelenski, and the Foreign Minister, Dimitro Kuleba, had attacked the possibility of an extension (as the Commissioner for Agriculture, Janusz Wojciechoski, had hinted in his personal capacity). The Ukrainian government assured that a decision in the opposite direction would violate the Association Agreement between the EU and Ukraine and the single market.

The measure is a lifeline for Ukraine, since the main grain export route, the Black Sea, remains blocked by Russia since last July. The “solidarity corridors” as Brussels calls them, designed by the Executive, are now practically the only way to export Ukrainian grain. At the moment, almost 50 million tons have left the country since last May.