The business appeal regarding the situation with the ban on the export of agricultural products

18/ 04/ 2023

The EBA member companies continue to work and actively support the country during the brutal war started by Russia against Ukraine. The association unites most of international and national companies represented on the grain and logistics market of Ukraine, which continue to work despite voluntary actions and, in particular, provide logistics from Ukrainian farmers to end buyers on world markets. Since the beginning of the war in Ukraine, since February 2022, Ukrainian Black Sea ports have been under a complete blockade, which has only been partially lifted for the shipment of agricultural products under the Grain Initiative. One of the possibilities to ensure agricultural exports is the stable passage of cargoes in the direction of European ports, in particular, ports of neighbouring countries. However, according to the information published on the official website of the Ministry of Agricultural Policy, in Poland, Hungary, and Slovakia, a decision was made to temporarily restrict the export of agricultural goods from Ukraine to/through the territory of the countries (including transit). At the same time, Bulgaria, according to media reports, is thinking about introducing a similar restriction. This, in fact, led to a complete halt in the export of Ukrainian grain and other agricultural products to the European market. It is worth noting that traditional export routes, in particular for Ukrainian agricultural products, did not previously pass through Poland, in particular. However, currently, 60-70 percent of agricultural cargo transiting through the territory of Poland to the ports of Gdansk, Gdynia, Szczecin, and Swinoujscie are intended for recipients in EU member states. Therefore, such a decision by the countries complicates the operation of the grain corridor and creates a threat to the export of agricultural products from Ukraine, which is extremely necessary to support the economy of our state, which is suffering from Russian aggression. The food security of countries that depend on the export of Ukrainian agricultural products is under threat. According to the UN World Food Program, the war against Ukraine has become one of the factors affecting the deterioration of global food security, and in combination with other factors such as fuel and fertilizer prices, has increased the number of people who are acutely food insecure to a record 345 million in 82 countries of the world. Therefore, on behalf of the EBA grain business community, we are asking you to help facilitate an urgent review of the recent decisions of the Governments of Hungary, Poland, and Slovakia regarding the temporary restriction of export to/through the territories of the countries (including transit) of agricultural products from Ukraine and to prevent such a restriction from Bulgaria. In particular, we draw your attention to the following: it is necessary to urgently restore the transit of agricultural products through the territory of Poland, Hungary, and Slovakia; moreover, the introduction of any restrictive measures regarding the import of agricultural goods from Ukraine must be introduced with advance warning, so that exporters could fulfill previously concluded contracts; restrictions on imports to Poland, Hungary, and Slovakia have been introduced for a number of Ukrainian agricultural products, however, according to business reports, goods that are not even included in this list, in particular, sunflower oil, are currently being detained, which creates even more confusion and is even more unacceptable. Therefore, we sincerely hope that Ukraines voice will be heard and this situation will be resolved as quickly as possible, exports will be unblocked, and similar restrictions will not be implemented in other countries.

Since the beginning of the war in Ukraine, since February 2022, Ukrainian Black Sea ports have been under a complete blockade, which has only been partially lifted for the shipment of agricultural products under the Grain Initiative. One of the possibilities to ensure agricultural exports is the stable passage of cargoes in the direction of European ports, in particular, ports of neighbouring countries.

However, according to the information published on the official website of the Ministry of Agricultural Policy, in Poland, Hungary, and Slovakia, a decision was made to temporarily restrict the export of agricultural goods from Ukraine to/through the territory of the countries (including transit). At the same time, Bulgaria, according to media reports, is thinking about introducing a similar restriction. This, in fact, led to a complete halt in the export of Ukrainian grain and other agricultural products to the European market. It is worth noting that traditional export routes, in particular for Ukrainian agricultural products, did not previously pass through Poland, in particular. However, currently, 60-70 percent of agricultural cargo transiting through the territory of Poland to the ports of Gdansk, Gdynia, Szczecin, and Swinoujscie are intended for recipients in EU member states.

Therefore, such a decision by the countries complicates the operation of the grain corridor and creates a threat to the export of agricultural products from Ukraine, which is extremely necessary to support the economy of our state, which is suffering from Russian aggression. The food security of countries that depend on the export of Ukrainian agricultural products is under threat. According to the UN World Food Program, the war against Ukraine has become one of the factors affecting the deterioration of global food security, and in combination with other factors such as fuel and fertilizer prices, has increased the number of people who are acutely food insecure to a record 345 million in 82 countries of the world.

Therefore, on behalf of the EBA grain business community, we are asking you to help facilitate an urgent review of the recent decisions of the Governments of Hungary, Poland, and Slovakia regarding the temporary restriction of export to/through the territories of the countries (including transit) of agricultural products from Ukraine and to prevent such a restriction from Bulgaria. In particular, we draw your attention to the following:

it is necessary to urgently restore the transit of agricultural products through the territory of Poland, Hungary, and Slovakia;
moreover, the introduction of any restrictive measures regarding the import of agricultural goods from Ukraine must be introduced with advance warning, so that exporters could fulfill previously concluded contracts;
restrictions on imports to Poland, Hungary, and Slovakia have been introduced for a number of Ukrainian agricultural products, however, according to business reports, goods that are not even included in this list, in particular, sunflower oil, are currently being detained, which creates even more confusion and is even more unacceptable.

Therefore, we sincerely hope that Ukraine’s voice will be heard and this situation will be resolved as quickly as possible, exports will be unblocked, and similar restrictions will not be implemented in other countries.