25 Jul 2023 21:45

EU must help cover cost of Ukrainian grain transit using solidarity lanes - European Commission member

BRUSSELS. July 25 (Interfax) - Ukrainian grain could be exported via solidarity lanes in the absence of the Black Sea grain deal, but EU's support will be needed to balance transit costs, European Commissioner for Agriculture Janusz Wojciechowski said.

"The continuation of the Black Sea corridor, the continuation of this deal, probably we can say there will be no further problem with the imports to the frontline member states. [...] Now we have a different situation and we have to consider all consequences of the situation," Wojciechowski said at a press conference in Brussels following a meeting of the Agriculture and Fisheries Council on Tuesday.

The EU could thus help export almost all the grain that Ukraine would export, he said.

Wojciechowski said he talked on the sidelines of the Agriculture and Fisheries Council meeting to the ministers of Bulgaria, Hungary, Poland, Romania and Slovakia, the five frontline member states facing problems over Ukrainian agricultural products, about their attitudes towards Ukrainian grain transit via their territories. "I was ensured that there is no problem with transit, the transit in all these five member states is continued without barriers," he said.

"There is necessary support for transportation. What is the political risk? Because of the costs of the transit, the cost of transportation, this is not attractive enough, trade using solidarity lanes [...] I will present this position in the commission that we should find a solution of how to support transport costs using also EU money. This is only my position now, but I will propose to discuss this question because there is the risk that Russia will be beneficial of the situation," he said.

"Because it will be cheaper to buy grain from Russia than to pay for the grain from Ukraine transported through Poland to the Baltic ports. The cost of this operation will be always higher than Russia can offer on the global market," he said.

When asked whether the temporary ban on imports of wheat, corn, rapeseed, or sunflower seeds from Ukraine to Bulgaria, Hungary, Poland, Romania and Slovakia will be extended after September 15, Wojciechowski said, "I am sure that we must assess the situation as a particular moment by September 15. We also have to look into this year's harvest, we will have more information by that time [...]. Everything will become clearer only after the harvest. [...] One needs to keep track of how the situation will develop. And I believe that we should decide before the temporary measures expire in September."

The market situation was expected to be analyzed every two months when the autonomous trade measures were introduced for the five EU member states, he said, adding that the next analysis is due to take place in August.

A possible expansion, in particular at Poland's request, of the list of products subject to these measures was not discussed, Wojciechowski said, adding that the issue should be studied.