EU Mulls Subsidizing Transport for Ukraine’s Grain Export

The European Commission is “seriously considering” subsidizing transport of Ukrainian grain through its member states after several countries banned imports, according to Poland’s public radio.

(Bloomberg) — The European Commission is “seriously considering” subsidizing transport of Ukrainian grain through its member states after several countries banned imports, according to Poland’s public radio.

The issue of supporting the cost of transiting Ukrainian grain is being discussed at meetings of representatives of Poland, Hungary, Slovakia, Romania and Bulgaria, together with the EU’s executive arm and Ukraine, the public radio reported on Saturday, without saying where it got the information. 

The estimated cost of subsidies may be around 30 euros ($32.62) per ton of grain, according to the report.

Earlier this year, the five EU member states bordering Ukraine secured a temporary ban on the sale of Ukrainian grain until mid-September in the wake of rising complaints from local farmers about an impact on their business. The five states are seeking to ensure potential subsidies will be accompanied by a decision to extend the ban until end-2023. The current rules don’t apply to goods transiting their territory.

In recent weeks, Ukraine’s export infrastructure was severely damaged by stepped-up attacks on its ports after Moscow pulled out of the grain agreement allowing Kyiv to ship grains via the Black Sea.

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