The European Union (EU) is planning to provide financial support for Ukrainian agricultural products to be sold on international markets after the Black Sea Grain Initiative expires, raising transportation prices.
EU Commissioner for Agriculture Janusz Wojciechowski discussed the Black Sea Grain Initiative and the state of the markets at the European Parliament (EP) Agriculture and Rural Development Committee.
It cannot be shipped through the Black Sea
Wojciechowski stated that they want to find a permanent solution that everyone can accept on the access of Ukrainian grain to international markets and said, “Ukraine needs to find selling points for its grain in global markets.”
Wojciechowski said that Russia is trying to replace Ukraine in these markets, but Ukraine can fight it.
“We want to try to cover the extra costs of 30 euros per ton,” Wojciechowski said, pointing out that the only problem with Ukraine’s grain is the additional costs of transportation as it cannot be shipped through the Black Sea.
Ukrainian grain traders can cover the transportation costs to the port
Emphasizing that the offer of 30 euros per ton support for Ukrainian grain will facilitate exports to other countries, Wojciechowski pointed out that companies in EU countries can help Ukraine with shipping.
“I am responsible for protecting our farmers and agriculture. My job is to try to prevent a shock and market disorder,” Wojciechowski said.
Emphasizing that the payment of 30 euros per ton does not cost much against the size of the EU budget, Wojciechowski said that the mechanism to be established can be likened to EU public subsidies, and with this support, Ukrainian grain traders can cover the transportation costs to the port.
Source: Anadolu Ajansı