In a significant move, Poland, Slovakia, and Hungary have announced new restrictions on the import of Ukrainian grains. This comes despite a recent decision by the European Commission not to extend its ban on grain imports to the five EU nations bordering Ukraine.
Historically, Ukraine has been one of the world’s foremost grain exporters. However, the outbreak of the Russo-Ukrainian war in 2022 significantly hampered its ability to supply agricultural products to global markets. Consequently, Ukrainian farmers have heavily relied on exporting grains through neighboring countries, especially since they’ve faced challenges using the Black Sea ports due to the ongoing conflict.
This influx of grains and oilseeds to neighboring nations caused a slump in prices, directly impacting the income of local farmers. In response, these governments had initially implemented bans on agricultural imports from Ukraine.
Earlier this year, the European Union intervened. In May, to prevent unilateral embargos by individual countries, the EU imposed its own conditional ban. Under this provision, Ukraine was allowed to transport through these countries provided the goods were sold elsewhere. This particular ban was lifted just last Friday after Ukraine pledged to strengthen controls on exports to neighboring countries.
Yet, this matter has become increasingly sensitive, as farmers are now harvesting their crops and gearing up for sales. Valdis Dombrovskis, the EU Trade Commissioner, stressed on Friday that member states should refrain from unilateral actions against Ukrainian grain imports. However, Poland, Slovakia, and Hungary swiftly reinstated their own restrictions, albeit still allowing Ukrainian products to pass through.
The precise commitments made by Ukraine remain unclear, and the implications of the new bans on the flow of products from Ukraine are yet to be fully understood. This situation has further highlighted the EU’s internal divide regarding the impact of the Ukrainian war on the economies of its member states, especially those with influential agricultural lobbies.
Ukrainian President Volodymyr Zelensky welcomed the EU’s decision not to extend the grain export ban in Kyiv but warned of a “civilized” response if EU member states breached the bloc’s rules. Despite this, the three Central European countries maintain their actions are in their economic interests.
To illustrate, Poland’s Agriculture Minister Robert Telus noted in a Facebook statement that the ban covers “four types of grains,” and on his and local farmers’ request, was expanded to include corn, wheat, rapeseed, ensuring these products don’t destabilize the Polish market. Meanwhile, Hungary has instituted a nationwide ban on importing 24 Ukrainian agricultural products, including grains, vegetables, various meats, and honey, according to a decree published last Friday. Slovakia’s Agriculture Minister took a similar stance, announcing a ban on Ukrainian grains. It’s important to note that all these bans only apply to domestic imports and won’t affect transit to external markets.
