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EU Considers Subsidizing Transportation Costs for Price Stability in Eastern Europe

Delivery time2023-07-26 01:14

Eastern Europe overland to the Baltic Sea… Consider subsidizing transportation costs for price stability

Cooperation with five countries, including Poland, is key… Eastern European countries request extension of ‘direct export ban’

EU Agricultural Commissioner at press conference

(Brussels EPA = Yonhap News) Janousi Wojciechowski, EU Commissioner for Agriculture, gives a press conference after a meeting of agriculture ministers from 27 countries in Brussels, Belgium, on the afternoon of the 25th (local time). 2023.7.25 photo@yna.co.kr

(Brussels = Yonhap News) Correspondent Bitna Jung = The European Union (EU) is reviewing a plan to divert all grains from Ukraine exported to the Black Sea by using land routes to EU member states.

“We are ready to export almost all of Ukraine’s exports through the Solidarity Corridor,” EU Agricultural Commissioner Janousi Wojciechowski said in a press conference after a meeting of agriculture ministers from 27 countries in Brussels on the afternoon of the 25th (local time).

The EU Solidarity Lanes are a detour that allowed some of Ukraine’s crops to be exported through Baltic Sea ports via overland routes from Eastern European EU member states that border Ukraine instead of the Black Sea after the outbreak of war in Ukraine.

As Russia’s recent unilateral termination of the Black Sea Grain Agreement has made stable exports to the Black Sea impossible at present, it means that it will consider ways to expand exports through this detour.

Given that grains from Ukraine were mainly exported to poor countries such as Africa before the war, the EU judges that it is urgent to prepare alternatives for global food security.

According to Wojciechowski, 60% of Ukraine’s total exports were exported through the Solidarity Corridor until right before Russia’s termination of the Black Sea Grain Agreement, and only the remaining 40% was exported to the Black Sea as before.

In addition, he added that if all grains are exported through the Yantai Corridor, it is about 4 million tons per month, and there was already a case of 4 million tons passing through EU territory in November last year.

It seems to be a background explanation to emphasize that ‘exporting all’ is not an impossible goal.

In particular, the executive committee plans to discuss a plan to support the EU budget for additional transportation costs incurred when exporting grains from Ukraine to the Solidarity Corridor.

Wojciechowski is in the position that exports through the Solidarity Corridor require support to stabilize prices as the price of Ukrainian grain increases due to high transportation costs.

“If this happens, Russia will benefit the most,” he said. “Russia will use this situation to bring grain to the world market at a cheaper price.”

However, cooperation from five Eastern European countries – Poland, Slovakia, Hungary, Romania and Bulgaria – is essential for the project to proceed as planned by the executive committee. As a result, the five countries are expected to more strongly demand from the executive committee to take precautions to protect the agricultural sector in each country as a condition of accepting the expansion of grain exports to Ukraine through their land routes.

In fact, the five countries requested at the Agriculture Ministers’ Meeting that day to extend the ‘direct import ban’ to the five countries, which is scheduled to expire on September 15, until the end of the year, the EU reported.

These countries have complained of side effects such as a sharp drop in local agricultural products prices due to a sharp influx of agricultural products from Ukraine since the Solidarity Corridor opened in earnest last year.

In response, the EU accepted the demands of the five countries, and from April to September, some grains, such as wheat and corn from Ukraine, were banned from being exported directly to the five countries and only exported to third countries were allowed to pass through. Temporary measures are being applied.

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2023-07-25 16:14:15

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