Brussels offers 100 million more aid east to avoid veto on grain from Ukraine

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HE second aid package to compensate countries affected by the export of grain and agricultural products Ukraine, Entering the European market exempt from tariffs and quotas last year in order to facilitate their transition to third countries, 100 million €. Although the European Union is a The first package of 56.3 million Just three weeks ago, pressure in the countries neighboring Ukraine, which condemned the impact of price drops on domestic markets, has not stopped increasing in recent weeks. up to this point Poland and Hungary Last weekend, Ukraine announced its intention to unilaterally restrict its imports. Slovakia and Bulgaria.

These four countries Romania, At the end of March, he sent a letter to the President of the European Commission, Ursula von der Leyen, voicing her concerns about the impact of the presence of Ukrainian agricultural products on their markets and calling for a solution. “a necessary common european approach. In a reply letter addressed to the leaders of the five eastern governments of Germany, unilateral measures can only benefit Ukraine’s adversaries and should not erode our unwavering support for this country.”

In his letter, the chairman of the commission reminds them that: solidarity runners The latter, created by the EU to allow Ukraine to export its grain, is “crucial” for Kiev’s resistance to Russia’s war of aggression. The German adds that “Ukraine’s exports must continue to reach markets around the world, including developing countries,” while agreeing that the EU must deal with the “unforeseen consequences” of the unexpected increase in imports in European countries that have condemned Ukraine’s presence. disturbances in their own markets

three lines of action

To respond to these challenges, Brussels proposes three lines of action to European governments. First, give more money to affected farmers. 100 million new payment proposal This amount, which will add to 56.3 million, of which 29.5 million for Poland, 16.75 million for Bulgaria and 10 million for Romania, was approved on 30 March to compensate farmers affected by the economic losses caused by Ukrainian grain and oilseed imports. While Brussels has yet to give a clue as to when this new hotline will arrive, the goal is to act quickly.

Secondly, Brussels proposes the adoption of: “precautionary measures” in commercial matters relating to certain grain categories, and in particular wheat, corn, rapeseed and sunflower seeds and third, the launch inquiry about other sensitive products. Community Executive Vice President, Valdis Dombrovskisplans to meet with representatives of the five affected countries and the Minister of Agriculture of Ukraine, Mykola Solsky“To make it easier for them to work and understand the situation in this market and possible landing sites,” said a von der Leyen spokesperson.

Ukrainian agricultural products, since June last year exemption from quotas and tariffs (Expires in June 2023) The European Commission proposes to extend it for another year, until June 2024, in order to facilitate the export of products to third countries, given the limited export capacity through the Black Sea ports. Until the start of the war in Russia, these ports were the exit point for 90% of the grain, but since then they have been effectively blocked and most of them have been moved to Ukraine’s western border.

Von der Leyen explains in his letter to relieve the 5 affected countries that the extension proposal includes: protection mechanism with stricter provisions, monitoring and reporting to Member States, lower trigger thresholds and a shorter evaluation period. “This specifically responds to the concerns of bordering Member States and stakeholders, including farmers, and will enable us to react more quickly to protect the EU market if needed in the future,” von der Leyen said. “More intensive” food markets to facilitate the transit of agricultural products both to other Member States and to third partners, in order to alleviate in the short term the pressure on the countries bordering Ukraine and at the same time help the liquidity of world agriculture.

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