The European Commission (EC) confirmed the end of restrictions on grain exports from Ukraine. The decision follows analysis of agricultural export categories, including corn, rapeseed, sunflower and wheat. In May, five neighboring EU member states imposed the embargo, citing an impact on prices due to Ukrainian exports. The agreement was reached after Ukraine agreed to implement legal measures to monitor imports into the European Union (EU). The information was released by AgriCensus, based on a statement from the EC.
Neighboring countries are initially believed to have extended exceptional and temporary measures until September 15 due to ongoing complaints.
Meanwhile, the EC press release stated that the temporary measures resolved “market distortions” and improved cross-border flows and volumes.
According to the agreement, Ukraine must implement legal measures within 30 days to curb grain imports to neighboring countries. Authorities have until September 18 to present an action plan to the Coordination Platform, which brings together representatives from Ukraine, the EU and the G7.
The EC and Ukraine will monitor the situation and avoid further restrictions if the Ukrainian measures work.
Ships break blockade: Ukrainian supplies reach world markets via new routes
The export of Ukrainian products through EU-established “solidarity routes” provided a vital outlet for the country's grain and oilseed supplies in the face of Russian attacks in the Black Sea, according to the report.
The blockade of the country's deep-water ports following Russia's invasion of Ukraine in February 2022 has reduced the country's exports, although the Black Sea Grains Initiative (BSGI) – brokered by the United Nations (UN) and Turkey – has reopened three major Ukrainian ports, according to the report.
However, the agreement expired in July when Russia refused to agree to an extension.
In this context, two cargo ships arrived at a Ukrainian port after traveling through the Black Sea using a new route, Ukrainian port authorities said in a BBC report.
They arrived in Chornomorsk on September 16 and were to carry 20,000 tons of wheat destined for world markets, according to the report.
According to authorities, it was the first time that civilian ships arrived at a Ukrainian port since the end of BSGI.
Previously, ships departing from Ukraine have used the corridor, as reported on September 17.
Deputy Prime Minister Oleksandr Kubrakov was quoted as saying that the ships – Resilient Africa and Aroyat – flew the flag of the oceanic island nation of Palau, and their crew were made up of citizens of Ukraine, Turkey, Azerbaijan and Egypt.
According to the Ukrainian Ministry of Agriculture, the ships will deliver the wheat to Egypt and Israel.
Ukraine and Croatia Explore Alternative Grain Export Routes
Meanwhile, in an earlier report, Reuters quoted Ukrainian Foreign Minister Dmytro Kuleba as saying on 9/7 that Ukraine and Croatia had agreed on the possibility of using Croatian ports on the Danube and Adriatic Sea to the export of Ukrainian grain.
“Although it is a niche trade route, it is already popular,” Ukraine's First Deputy Prime Minister Yulia Svyrydenko said in a written statement.
Svyrydenko did not say how much grain had already been shipped through Croatian ports, according to the report.
Since Russia left BSGI in July, Kiev has increasingly used its Danube river ports to export grain, Reuters wrote.
However, Russia is targeting Ukrainian port infrastructure on the Danube, Reuters said.
According to the report, brokers stated that deliveries by rail are more expensive than direct exports through Ukrainian ports.
Ukrainian traders' union UGA said the country's combined harvest in 2023 could reach 80.5 million tonnes.
Source: Oils & Fats International
