EU Urged to Bail Out Ukrainian Agriculture Amid Port Crisis
Ukraine's agricultural sector is facing significant challenges due to logistics bottlenecks at the ports of Greater Odesa. According to Minister Vysochkyi, these restrictions could leave over 30 million tonnes of goods worth around $10 billion stranded.
The minister predicts that this could result in losses of up to 5% of GDP and reduce state budget revenues by UAH 90 billion annually. In the spring, farmers may reduce the area they sow by 35-40%.
To mitigate these effects, Ukraine has asked the European Union to allocate €1.1 billion to cover additional logistics costs. The funds would be used to transport grain to more distant European ports, with payments of up to €50 per tonne. This support is expected to enable an additional 22 million tonnes of agricultural products to be exported, potentially generating over $7-8 billion in revenue for Ukrainian farmers.
Vysochkyi emphasized that Ukraine seeks to ensure the transit of agricultural products through the European Union. He noted that the 1.3-million-tonne quota for Ukrainian wheat exports has already been used and subsequent shipments should be transported in transit rather than supplied directly to the European market.