UGA proposes to European Commission to increase exports "by means of solidarity" by 1-1.5 million tons per month

The Ukrainian Grain Association (UGA) in connection with the failure of the "Black Sea Grain Initiative" by the Russian Federation proposes to the European Commission to increase exports "by means of solidarity" by 1-1.5 million tons per month, compensating part of the costs of European carriers and ports that transit Ukrainian grain.

This is stated in the message of the UGA, Ukrainian News Agency reports.

"UGA appealed officially to Mr. Valdis Dombrovskis, Executive Vice President, Trade Commissioner of the European Commission regarding the optimization of alternative routes, the so-called "solidarity routes", grain exports from Ukraine to European ports with subsequent shipment to third countries. In particular, UGA proposed to the European Commission to increase exports via solidarity routes by 1-1.5 million tons per month, compensating part of the costs of European carriers and ports that carry out transit of Ukrainian grain. This will lead to a significant reduction in the cost of grain transportation and will enable Ukrainian farmers to profitably export surplus grain to countries that need Ukrainian grain and stabilize global food security," the message reads.

According to the report, it is possible to increase the volume of exports of grain and oil crops "by means of solidarity" at the expense of the ports of the Baltic states (Klaipeda and others), Germany (Rostock, Hamburg), the Netherlands (Rotterdam), Croatia (Rijeka), Italy (Trieste) and Slovenia (Koper).

At the same time, these routes are not used much due to the complexity and cost of logistics compared to other routes, in particular, the price difference is approximately EUR 30-40 per ton.

UGA asks the EU to introduce "green corridors" for Ukrainian agricultural products to the seaports of the Baltic countries, Germany, the Netherlands, Croatia, Italy and Slovenia, which will include:

- the transfer of sanitary, phytosanitary and veterinary control from checkpoints on the border with Ukraine to the territory of the country of destination, which will ensure a significant increase in exports;

- introduction of subsidies from the European Commission to compensate European carriers for additional logistics costs for transit transportation and partial compensation for European ports - the so-called port costs for Ukrainian grain.

The message reminds that in 2022, Ukraine harvested more than 73 million tons of grain and oil crops, and exports in the 2022/2023 season amounted to about 58 million tons.

At the same time, more than 29 million tons of grain and oilseeds were exported through Ukrainian Black Sea ports as part of the "grain initiative", a little more than 15 million tons - through Danube ports, and about 14 million tons - by rail and road transport.

As Ukrainian News Agency earlier reported, on July 17, Russia announced the withdrawal of shipping safety guarantees in the Black Sea to ensure the "grain corridor".

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