Expanded restrictions on imports of Ukrainian agricultural produce to EU may protract crisis - agrarian policy minister

MOSCOW. March 26 (Interfax) - French-Polish steps to expand restrictions on imports of Ukrainian food products to the European Union may provoke deterioration and prolongation of the crisis, Ukrainian media quoted Ukrainian Agrarian Policy and Food Minister Nikolai Solsky as saying in an interview with the Financial Times.

Solsky said that the additional restrictions, which are currently the subject of heated debates within the EU, are intended to calm outraged European farmers, but at the same time, they will affect Ukraine's revenue and "increase the chances" that the crisis will drag on.

Solsky noted that it was not Ukraine's fault that high harvests in the United States and Latin America had caused a drop in grain prices. He added that higher protectionism and subsidies are not a solution for European farmers, as they need to become more efficient to compete on global markets.

"Eighty percent of the problems that are usually connected to Ukrainian exports do not exist. They are imaginary," Solsky said.

The Financial Times noted that Warsaw and Paris are making efforts to enhance a preliminary agreement reached last week imposing restrictions on many Ukrainian imports in exchange for an extension of the duty-free regime adopted after the onset of the crisis.

Farmers in Poland have blocked the border with Ukraine, while anti-Ukrainian sentiment is also growing in France, increasing pressure on French President Emmanuel Macron, who in turn, is demanding to expand the restrictions prior to a meeting of EU ambassadors scheduled for March 27 to conclude an agreement on imports of Ukrainian agricultural goods, the media reported.

The agreement signed last week on the extension of autonomous trade measures already envisioned a 400-million-euro cut in Ukrainian agricultural imports to the EU. The Franco-Polish proposal would reduce this amount by another 800 million euros.

"Diplomats said the swing vote would be in the hands of the Italian government, as a positive decision would require the backing of a majority of member states, weighted according to the size of their population. If Rome backs Warsaw and Paris other member states will have to agree to bigger cuts to prevent tariff-free access ending in June," the Financial Times said.

The demands of Poland and France are backed by Slovakia and Hungary, and Austria and Italy are ready to support them, having retracted their approval of last week's agreements, the Brussels publication Politico reported on Monday.

These agreements are only part of the fulfilled demands of Warsaw and Paris, as well as the European Parliament, which adopted an amendment by Polish MEP Andrzej Halicki. He initiated the expansion of the list of sensitive goods whose imports will be subject to restrictions. Along with eggs, sugar and poultry meat, honey and a number of crops have been added to this list.

Currently, Poland, supported by France, is trying to extend the term of import restrictions when calculating quotas for sensitive products. Warsaw and Paris want to add 2021 to the years 2022-2023 proposed by the European Commission, which will lead to tougher trade relations between the EU and Ukraine.