Poland, Slovakia, and Hungary have implemented their own restrictions on Ukrainian grain imports following the European Commission’s decision not to extend its ban on imports into Ukraine’s five EU neighbors. Since the Russian invasion in 2022, Ukraine’s ability to export agricultural produce has been limited, leading farmers to rely on neighboring countries as alternative export routes. However, the influx of grains and oilseeds into these countries has driven down prices and negatively affected local farmers’ incomes, prompting governments to ban agricultural imports from Ukraine.
To prevent individual countries from imposing unilateral bans, the European Union imposed its own ban on imports into neighboring countries in May. Under the EU ban, Ukraine was allowed to export through these countries as long as the produce was sold elsewhere. However, on Friday, the EU allowed the ban to expire after Ukraine committed to tightening control of exports to neighboring countries, triggering Poland, Slovakia, and Hungary to reimpose their own restrictions on Ukrainian grain imports. Transit of Ukrainian produce will still be allowed.
EU Trade Commissioner Valdis Dombrovskis urged countries to refrain from unilateral measures against imports of Ukrainian grain, emphasizing that disruptions to Black Sea exports are a bigger concern. The extent of Ukraine’s export restrictions and the impact of the new bans on the flow of produce from Ukraine remain unclear. This issue has highlighted divisions within the EU regarding the economic impact of the war in Ukraine on member countries with strong agriculture and farming industries.
Ukrainian President Volodymyr Zelenskyy welcomed the EU’s decision not to extend the ban on Ukraine’s grain exports but stated that his government would respond “in civilized fashion” if EU member states violated EU rules. Meanwhile, Poland, Slovakia, and Hungary argue that their actions are in the interest of their economies.
Hungary imposed a national import ban on 24 Ukrainian agricultural products, while Slovakia announced its own grain ban. However, these bans only apply to domestic imports and do not affect transit to onward markets. The EU had previously created alternative land routes, called Solidarity Lanes, for Ukraine to use to export grains and oilseeds after Russia withdrew from a U.N.-brokered Black Sea grain deal. The EU Commission decided not to extend the ban as Ukraine agreed to implement measures such as an export licensing system within 30 days.
Farmers in the neighboring countries have frequently complained about the surplus of Ukrainian products hurting domestic prices and pushing them towards bankruptcy. Except for Bulgaria, the five countries had advocated for an extension of the EU ban. Romania, which did not impose a unilateral ban before May, expressed regret that a European solution to extend the ban could not be reached. Romania will wait for Ukraine’s plan to prevent an export surge before deciding how to protect Romanian farmers.
Over the past year, Ukraine has been using the Solidarity Lanes for 60% of its exports and the Black Sea for 40% through a U.N.-brokered deal that collapsed in July. In August, approximately 4 million tonnes of Ukrainian grains were transported through the Solidarity Lanes, with close to 2.7 million tonnes passing through the Danube.