Import of Ukrainian cereals: the EU wants restrictions lifted, Poland, Slovakia and Hungary resist

On the way to a new confrontation? Brussels announced on Friday it would lift a five-member EU ban on Ukrainian grain imports in exchange for Kiev’s pledge to control grain flows – risking offending Warsaw, Bratislava and Budapest, which are determined to maintain their positions. restrictions.

At the end of April, the European Commission entered into an agreement with five member states (Poland, Hungary, Slovakia, Bulgaria, Romania), allowing them to block the sale of Ukrainian wheat, corn, rapeseed and sunflower on their territory in order to protect their products. farmers, provided that they do not interfere with the transit of grain to other countries.

Following the lifting of EU customs duties in May 2022, these countries actually faced an influx of cut-price grains from Ukraine, but were blocked on their territory due to logistical problems rather than joining Africa and the Middle East. Some have unilaterally banned imports to stop their bunkers becoming overstocked and local prices collapsing.

Kyiv welcomes “compliance with free trade rules”

The restrictions, which Brussels – the custodian of EU trade policy – then formally sanctioned and then extended until September 15, provided those countries kept grain flowing to other destinations. “Thanks to these temporary measures, market distortions in these five countries have disappeared,” and improved logistics conditions have allowed increased supplies of grain to other countries, the Commission welcomed. “As a result, the current measures expire today.”

Kyiv, fiercely opposed to restrictions, welcomed “respect for free trade rules”: “This is an example of true unity and trust between Ukraine and the EU. Europe always wins when the rules work and agreements are implemented,” responded President Vladimir Zelensky.

In an effort to provide guarantees to eastern countries, the Commission clarifies that in return Kyiv has pledged to take measures within one month to “avoid sharp surges” in grain volumes, for example through an export licensing system. Until then, Ukraine will take “effective measures” to control exports and prevent destabilization of border countries. By Monday evening, Kyiv will have to submit an “action plan” to Brussels, which promises not to re-impose restrictions “until the measures taken are fully effective.”

“Farmers’ interests”

Not enough to convince Poland and Hungary, which immediately announced that they would unilaterally maintain the ban on the import of Ukrainian cereals. And this is in violation of a decision taken by the Commission, which has exclusive jurisdiction over EU trade policy – with the risk, as in the spring, of a political and legal confrontation with Brussels.

“Hungary will close its borders to 24 Ukrainian goods,” much more than the four currently affected, to “protect the interests of our farmers,” Hungarian Agriculture Minister Istvan Nagy said. And a month before elections in Poland, the populist right-wing government is raising this issue as a “fundamental one.” “We will undoubtedly defend the interests of Polish farmers,” said Prime Minister Mateusz Morawiecki, whose Law and Justice party enjoys strong support in agricultural regions.

“If the decisions of our neighbors violate EU legislation, Ukraine will react in a civilized manner,” Vladimir Zelensky warned. Kyiv is threatening to seize the World Trade Organization (WTO) and demand compensation.