EU Aid Crucial as Ukraine Grain Exports Face Devastating Decline
The Russian blockade of Ukraine's ports has put a major strain on the country's agricultural exports. The Ukrainian Ministry of Agrarian Policy and Food is seeking €220 million in grants from the European Commission to help keep small and medium farmers afloat.
With the corridor largely stalled, the ministry projects that grain exports for the 2026/2027 season could fall by almost half, from 64.4 million to about 29.6 million tonnes.
The grant is designed to unlock a credit portfolio of up to €4 billion at a rate of no more than 10% for small and medium producers that meet environmental and social criteria.
The blockade has already caused significant losses, with oilseed and grain prices falling by about 30%, and the ministry estimates direct losses to the sector this year at between $1.5 billion and $3 billion.