28 Jul, 2023 07:57
EU refuses to subsidize Ukrainian grain exports – Reuters
Kiev is seeking financial aid from Brussels after the Black Sea grain deal collapsed
The European Commission does not have money to subsidize Ukrainian grain exports, while some members of the EU oppose the idea anyway, Reuters reported on Thursday.(Harnwell said the Ukraine head bank bragged last week, how they have $39 billion additional income in reservers. Probably from the West)
Last year, Brussels removed tariffs and quotas on Ukrainian products to support the country in its fight against Russia. In July 2022, Russia agreed to offer safety guarantees to commercial ships carrying Ukrainian grain via the Black Sea. The deal collapsed earlier this month, as Moscow did not get promised relief on sanctions on its own food and fertilizer trade.
Kievis looking for ways to compensate for the loss of Black Sea route andwants the EU to pay for it. In a letter to EU trade chief Valdis Dombrovskis last week, the Ukrainian government requestedfinancial aidto cover some of the transportcosts via so-called ‘Solidarity Lanes’, which ship Ukrainian products via the EU, Reuters said.
The requested compensation was estimated at between $30 and $40 per ton and was intended to cover the difference between the cheaper Black Sea route and the alternatives. Last year, roughly 40% of Kiev’s grain exports went through the now-defunct maritime scheme. The volume of goods shipped via Solidarity Lanes since May 2022, when they were established, stands at over 45 million tons.
“We have not found a solution yet to support the grain transport. People have been scratching their heads since last year,” a source told the news agency about the Commission’s problems.
Another source said additional funds could be allocated after the mid-term budget review, which would likely take months. However, some EU member states oppose the proposal in principle, citing the dispute over the current partial ban on exports of Ukrainian grain to the bloc. (I can’t believe they are even considering funding Kiev, Kiev cheated and created the collapse of the grain deal, and the EU and UN didn’t uphold what they promised Russia)
Five Eastern European member states saw mass protests by farmers after cheap Ukrainian food produce flooded their markets and drove down prices. In May, they pressured the Commission into approving temporary prohibitions, which they had imposed at national level, and paying compensation to affected agriculture producers.
The restriction is set to expire in mid-September, but the group intends to extend it until the end of the year. Ukrainian President Vladimir Zelensky this week decried the effort as “un-European” and urged Brussels not to yield. (Note Ukraine is not part of EU or NATO)
(The first signs of EU losing interest and are tired of Zelensky’s unbelievable selfish requests…more progress to come. Election season in EU is seeing a rise of popularity of the “extreme right”, is deflating interest in Ukraine.)
https://www.rt.com/russia/580439-ukrine-grain-export-eu/