EU Bans Ukrainian Grain Exports to Romania

As Russia’s “special military operation,” continues in Ukraine, tensions rise in EU countries receiving a majority of Ukraine’s grain exports. The five countries impacted by the grain, Bulgaria, Hungary, Poland, Romania, and Slovakia have all protested the European Commission to restrict the overflow of grain being imported into their countries. All of the countries have imposed their own restrictions on imports, but the Commission has now recognized their concerns and taken action, placing an official temporary ban on Ukrainian grain as well as several other agricultural goods.

G7 talks about an export ban on Russia are threatening the end of the Black Sea Grain Treaty, a deal made to aid in the global food shortage crisis. If there is an export ban, Russia will likely react by refusing to renew the treaty, which has been set to end on May 18th. This treaty has been crucial for countries in Africa and the Middle East, as a large amount of their grain came from Ukraine before the war. Because of the treaty, grain has been allowed to enter these Central and Eastern European countries with the understanding that it would then be exported to a final third country.

The countries were supposed to be a hub for exporting Ukrainian grain to Africa and the Middle East, but once the grain arrived at their ports, private companies began selling it locally. Because of these factors, costs have risen for farmers in the five countries. Previously, the Commission had offered to create a program with €100m in funding for farmers, but the countries affected by the grain believed that it would not be enough to compensate for their losses. While there is still overwhelming support for Ukraine; the European Commission agreed that until June 5th, grain exports — along with dairy and poultry — from Ukraine will be halted.

Contributor: Robert J. Freeman

(Sources: NY Times, Reuters, bne Intellinews)

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