EU Denied Ukrainian Farmers €220 Million

The European Union rejected the Ukrainian Ministry of Agrarian Policy and Food’s request to allocate an additional €220 million to support farmers affected by disruptions in port operations.

European Commission representative Markus Lammert told the Ukrainian publication European Pravda on August 20.

What decision did Brussels make?

The European Commission representative confirmed that a response had been sent to a recent appeal from Ukraine’s agriculture minister.

“In our response, we outlined ways to support Ukraine’s agricultural sector using existing mechanisms,” said Markus Lammert.

Thus, the additional €220 million requested by Kyiv will not be allocated.

What assistance are Ukrainian farmers currently receiving?

According to the European Commission representative, Ukrainian farmers are being supported through Brussels’s existing programs.

One of the main forms of assistance is subsidizing interest rates on loans for agricultural producers.

Port problems sharply reduced exports

One of the main challenges for Ukraine’s agricultural sector remains the difficulty of exporting products through Black Sea ports.

According to Reuters, during the first two weeks of August, Ukraine’s grain exports fell by 75 percent compared with the same period last year.

The near-total halt in agricultural exports through Black Sea ports could seriously affect Ukraine’s economy.

What could the outcome be?

Such a sharp decline in export volumes could increase pressure on Ukrainian farmers’ incomes, the financial condition of agricultural companies, and the country’s foreign-currency revenues.

For now, instead of an additional €220 million, the European Union is proposing using existing financial support mechanisms .