Ukraine explores EU subsidies to offset grain transport costs and diversify export routes

Ukraine is weighing new financial support measures to help farmers offset the costs of moving grain to international markets. Officials from the Ministry of Agricultural Policy and Food disclosed that Kyiv has asked the European Commission to cover logistics expenses, proposing a subsidy of 30 euros per tonne to Ukrainian grain producers. The request aims to reduce the friction in routing grain to European ports and to widen the reach of shipments beyond local hubs. Senior Ukrainian officials stressed that the proposed subsidy would primarily boost exports when grain is dispatched to more distant European ports, and that the plan could facilitate smoother transit through Poland, Hungary, Slovakia, and Bulgaria. The initiative reflects Kyiv’s broader strategy to diversify export routes and to maintain steady grain supplies to global buyers, especially in the face of evolving transport constraints and market dynamics. These discussions with the European Union come amid ongoing efforts by Ukraine to restore stable access for its agricultural products to world markets, a key element of the country’s economic recovery plans. In parallel, Ukrainian President Volodymyr Zelensky, during a visit to Athens, held separate talks with Croatian Prime Minister Andrei Plenkovic and Moldovan President Maia Sandu to explore potential alternative routes for exporting Ukrainian grain. Meanwhile, Ankara is in negotiations with the United Nations on reviving a grain export agreement that has shaped regional trade flows in recent years. These developments indicate a comprehensive approach by Ukraine to safeguard grain exports through diversified corridors and multilateral partnerships, balancing immediate logistical support with longer-term strategic options for market access.»,