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According to the report of the European Commission at the end of autumn 2023, Ukraine, despite the military circumstances, remains among the leaders in the grain import to the countries of the European Union, occupying the third position after Brazil and Great Britain.

The shipment of Ukrainian grain abroad exceeded the mark of 12 million tons. Thus, Ukraine remains one of the largest suppliers of grain, firmly holding its position in the market. In the summer period, imports to Europe increased by 5% compared to the previous year and reached around 13 billion euros, which is only 15% less than in the corresponding period of 2022. The total volume of imported grain for the period from the beginning of the year to September 2023 was €107 billion, which reflects a slight decrease (by only 3%), taking into account the wartime circumstances. So, during this period, 3 countries, including Ukraine, entered the list of leaders of suppliers of grain products to EU countries.

Comparing the figures, total imports increased by 23%, amounting to approximately €1.5 billion. However, since June 2023, the monthly indicators of import of agricultural products abroad have slightly decreased. Regarding exports from Europe, Ukraine ranked 14th among all consumers and had a volume of €2.5 billion from the beginning of the year to September. During this period last year, we imported €1.8 billion worth of agricultural products, so an absolute increase of €385 million, or 21%.

With the beginning of a full-scale Russian invasion and the blockade of Ukrainian ports, the situation could become very unpleasant. However, the European Union established “corridors of solidarity” on the borders with Ukraine, which helped in the supply of Ukrainian agricultural products to foreign markets and significantly affected revenues to the state budget.

Due to hostilities, a quarter of Ukrainian agricultural land has become unusable. At the same time, five countries directly bordering Ukraine – Poland, Hungary, Slovakia, Bulgaria and Romania – reported instability in their domestic agricultural markets due to a change in the direction of our grain exports, which increased, and local farmers did not like it. The crisis was averted thanks to an agreed package of measures between the European Commission and Ukraine’s four neighboring countries, to be implemented after they end unilateral actions on grain imports from Ukraine.

This package limited the supply of four key Ukrainian products, such as wheat, corn, seeds and sunflower, but allowed their transit to other EU countries. Temporary measures to limit the wheat export, corn, seeds and sunflowers ended in early autumn 2023, but Slovakia, Poland and Hungary imposed a unilateral ban on the import of Ukrainian agricultural products. What will happen next – we are watching.

01.12.2023

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