EU considers subsidizing Ukraine's grain exports

EU commissioner proposes support amid rising transit costs

{reg}The European Union is considering subsidies to aid Ukraine's grain exports following Russia's withdrawal from the Black Sea grain deal. EU Commissioner for Agriculture, Janusz Wojciechowski, aims to provide support to Ukraine's agricultural products, which face increasing transit expenses due to Russia's move to replace Ukraine in key markets.

Wojciechowski's proposal involves an average subsidy of EUR 30 (USD 33) per ton for Ukrainian products, making them more competitive for international buyers outside Europe. Depending on the destination, this subsidy would range from EUR 20 to EUR 40 per ton.

With Ukraine expected to produce 56 million tons of grain this year and maintain a monthly export of 4-5 million tons, the suspension of sea shipments after Russia's exit from the grain deal has posed challenges.

Previously mediated by Turkey and the UN, the Black Sea grain deal had reopened Ukrainian ports for exports, facilitating the shipment of over 30 million metric tons of grain and agricultural products to 45 countries. This contributed to stabilizing global food prices and market conditions.

The EU's proposed subsidies aim to support Ukraine's continued participation in the international grain market amidst these challenges.[/reg]