Grain ban: Brussels caves to Ukraine, Hungarian government takes action

Bowing to demands of Ukraine, European Commission comes up with an intermediate solution. Meanwhile, the war-torn country continues with threats.

Fotó: MTI/EPA/Szergej Ilnyickij

The European Commission has analysed data on the impact of the exports of four categories of agricultural products on the EU market. The Commission concluded that thanks to the work of the Coordination Platform and the temporary measures introduced on May 2, 2023, market distortions in the five member states bordering Ukraine have disappeared. In its communication , the Commission continued with the following list of decisions regarding the import ban:

    • Existing measures will expire today.
   • Ukraine has agreed to introduce any legal measures (including, for example, an export licensing system) within 30 days to avoid grain surges.
   • Until then, Ukraine is to put in place from September 16, 2023 effective measures to control the export of 4 groups of goods in order to prevent any market distortions in the neighboring Member States. Ukraine will submit an Action Plan to the platform no later than close-of-business on Monday September 18, 2023.
   • The European Commission and Ukraine will monitor the situation via the platform to be able to react to any unforeseen situations.
   • The European Commission will refrain from imposing any restrictions as long as the effective measures by Ukraine are in place and fully working.

Hungary's Agriculture Minister Istvan Nagy reacted on his social media page, posting: 

Brussels has made their decision. Therefore, Hungary, within its own national competence, is closing its borders to 24 Ukrainian products. We are protecting the interests of Hungarian farmers. 

"I am telling all farmers across Poland: We will extend and prolong the ban on imports of Ukrainian cereals", said Polish Prime Minister Mateusz Morawiecki in response to the Brussels decision. The Polish government has been stressing for days that if the European Commission does not act, the Poles will do so on their own. Polish Deputy Agriculture Minister Anna Gembicka stressed on Polish public radio that Ukrainian exports would not be affected by the ban, contrary to what the Ukrainians claim. Currently, more Ukrainian grain passes through Poland than before the ban.
Polish government spokesman Piotr Muller told the PAP news agency that a decree extending the embargo will be issued on Friday (9.15) in line with Morawiecki's announcement.
Marcin Przydacz, head of the foreign affairs department of the Polish head of state's office, told Polish commercial TV station Polsat News that the European Commission's decision goes against the interests of Ukraine's neighbors, the EU internal market and the EU economy.

Meanwhile, Slovakia's government is following in the footsteps of Poland and Hungary. Quoting the Ministry of Agriculture, Slovak television channel Markiza explained Bratislava's position as: otherwise the Slovak market would be flooded with cheap Ukrainian grain, which would cause great financial damage to local agricultural producers.
Ukrainian President Volodymyr Zelensky reacted by announcing that if neighboring countries violate EU law, then  

Ukraine will respond in a civilized manner.

Kiev has once again raised the prospect of turning to the World Trade Organisation (WTO) for damages - that is, suing those who have been helping Ukrainian refugees since the war began and who have been providing financial assistance within the EU framework.

It is critical that European solidarity now work on a bilateral level. For our neighbors to support Ukraine during times of war,

the Ukrainian president wrote on his social media page after talks with European Commission President Ursula von der Leyen.
 

I just spoke with @vonderleyen.

All previous European Commission restrictions on Ukraine's agricultural exports have now been lifted.

I thanked Ursula von der Leyen for keeping her word and upholding the rules of the single market. This is an example of Ukraine and the EU…

— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) September 15, 2023

Cover photo: Ukrainian grain harvesting (Photo: MTI/EPA/Szergej Ilnyickij)