Ukrainian grain producers request access to EU ports
The Ukrainian Grain Association (UGA) has appealed to EU’s Trade Commissioner, Valdis Dombrovskis, to optimize alternative routes for grain exports from Ukraine to European ports, from where they can be shipped to other countries.
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In a statement made on July 24, the UGA has proposed an increase in grain exports via the so-called "Solidarity Lanes" by 1-1.5 million tons per month. This measure, aimed at compensating some costs borne by European carriers and ports involved in Ukrainian grain transit, could significantly reduce transportation expenses. This would enable Ukrainian farmers to export surplus grain to countries in need and contribute to stabilizing global food security.
“Ukraine harvested more than 73 million tons of grain and oilseed crops, and exports in the 2022/2023 season amounted to about 58 million tons,” the message reads.
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“Over 29 million tons of grain and oilseeds were exported through Ukrainian Black Sea ports under the Grain Initiative, a little more than 15 million tons – through Danube ports, and about 14 million tons – by railway and trucks.”
The proposal involves exports via the ports of Baltic countries (like Klaipeda), Germany (Rostock, Hamburg), the Netherlands (Rotterdam), Croatia (Rijeka), Italy (Trieste), and Slovenia (Koper). The European Commission actively supports the development of these routes. However, they are currently underutilized due to high logistical costs compared to alternative routes, with a price difference of roughly 30-40 euros per ton of grain delivered.
The UGA is, therefore, appealing to the EU to create “green corridors” for Ukrainian agricultural products to reach ports in the Baltic countries, Germany, the Netherlands, Croatia, Italy, and Slovenia. These corridors would involve:
1) Transferring sanitary, phytosanitary, and veterinary control from border checkpoints in Ukraine to the destination countries, which would significantly increase throughput.
2) Instituting European Commission subsidies to offset additional logistical costs for transit shipments and partially compensating shipping costs of Ukrainian grain for European ports.
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The UGA includes major producers, processors, and exporters of Ukrainian grain, representing nearly 90% of the market.
A Ukraine-NATO Council meeting scheduled for July 26 will discuss Ukrainian grain transportation across the Black Sea.
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