Hahn doubts this extra money will solve the problems. Poland announced yesterday that grain transit may continue. With sealed railway carriages and stricter border controls. For example, grain can be transported to ports on the Baltic Sea without some of it ending up in Poland. Even Hungary does not give in entirely. Budapest indicates that it is still waiting for money from the European corona recovery fund and “what is needed”.
Measures
Due to the Russian invasion, several ports on the Black Sea were blocked, which caused large quantities of Ukrainian grain to remain in Central European states due to logistical problems. This grain is cheaper than EU-produced grain, which has depressed prices and sales for farmers in neighboring countries.
The European Commission is still working on preventive measures to prevent the export of other agricultural products from affecting farmers in neighboring countries. “It appears that some Ukrainian products and goods will be imported from EU countries at a reduced import rate, such as wheat, corn, oilseed rape and sunflower seeds,” Hahn explains.
But with these protectionist measures, the Ukrainian economy is likely to suffer an even harder economic blow and the country will therefore be compensated. As a result, there is a possibility that Ukrainian farmers will earn less. EU member states and financial institutions, such as the European Bank for Reconstruction and Development, support Ukraine financially and “so that money for Ukraine’s compensation still comes from us”.