Moldova follows EU countries to limit grain, oil imports from Ukraine

MOSCOW. May 5 (Interfax) - Moldova plans to impose temporary restrictions on grain and oil imports from Ukraine, the Moldovan Ministry of Agriculture and Food Industry said on Friday.

The intention to introduce measures similar to those imposed by several EU countries was announced by Minister Vladimir Bolea at his meeting with the head of the EU delegation to Moldova, Janis Mazeiks.

Moldova is preparing a series of measures to retain the competitive positions of its agricultural sector, as Moldovan farmers have constantly complained about the high cost of making their products, the minister said.

To resolve the problem, the National Agricultural and Rural Development Fund will pay famers compensation for the excise on used diesel fuel. The government also intends to subsidize farmers for the cost of pesticides and fertilizers.

The meeting also focused on possible EU assistance for the harmonization of Moldovan agricultural laws.

It was reported that the European Commission imposed a ban, effective from May 2 to June 5, on the import of wheat, maize, rapeseed, and sunflower seeds of Ukrainian origin to Bulgaria, Hungary, Poland, Romania and Slovakia, having demanded that Poland, Hungary, Slovakia and Bulgaria scrap similar bans they imposed unilaterally from April 15.

The rest of the EU must continue to import all Ukrainian products, including wheat, maize, rapeseed and sunflower, without limitation, the European Commission said, adding that the ban did not extend to contracts signed prior to its imposition.

Western media earlier reported that an influx of Ukrainian grain and other products from that country in recent months has created a problem for agricultural producers in several eastern EU members. Countries bordering Ukraine have been oversaturated with goods such as grain, seeds, eggs, poultry meat, sugar, apples and apple juice, berries, flour, honey, pasta, leading to an oversupply and, consequently, a negative effect on the prices of local producers. Another problem is that excessive quantities of such goods remain available on supermarket shelves in those countries instead of reaching non-EU countries ready to buy them.

According to data from Ukraine's State Customs Service, in the first quarter of this year exports to Moldova included 12,600 tonnes of corn worth $4.01 million, 340 tonnes of sunflower seeds worth $350,000, 120 tonnes of other oilseeds worth $310,000, and 6,370 tonnes of sunflower seed oil worth $5.95 million.