The European Union’s executive arm Monday denounced unilateral bans imposed by Poland and Hungary on imports of grain and other food from Ukraine to protect their local agricultural sectors.
Some Black Sea ports were blocked after Russia’s invasion of Ukraine in February last year and large quantities of Ukrainian grain – which is cheaper than that produced in the European Union – ended up staying in Central European countries owing to logistical bottlenecks.
This hit prices and sales for local farmers, mounting pressure on governments that had turned to the European Union for action before Warsaw and Budapest took their own decisions over the weekend. The countries are part of a group that sought to have bloc-wide tariffs on imports as part of possible measures.
The oversupply has become a political issue for Poland’s ruling Law and Justice (PiS) party in an election year, as it has angered people in rural areas where support for PiS is usually high.
“We are aware of Poland and Hungary’s announcements related to the ban on grain imports and other agricultural products from Ukraine,” a spokesperson for the European Commission said in an emailed statement.
“In this context, it is important to underline that trade policy is of EU exclusive competence and, therefore, unilateral actions are not acceptable.”
“In such challenging times, it is crucial to coordinate and align all decisions within the EU,” the statement added.
Poland’s ban on grains also applied to transit through the country. Officials have said it is meant to keep grain transport from entering the Polish market.
Ukraine’s agriculture minister said Kyiv wanted to reopen food and grain transit via Poland as a first step at talks in Warsaw on Monday.
“The first step, in our opinion, should be the opening of transit, because it is quite important, and it is something that should be done unconditionally and after that, we will discuss other issues,” said Ukrainian Agriculture Minister Mykola Solsky.
“In terms of figures, everything that crossed the Polish border (from Ukraine)… is about 10% of everything (of food goods) Ukraine exported,” he said in comments published on the Telegram messaging app by the Agriculture Ministry.
He said deliveries to Hungary accounted for around 6% of Ukraine’s farm exports, adding that Ukrainian food transit via Hungary and Slovakia was unaffected.
He also said there would be additional talks this week in Romania on Wednesday, and in Slovakia on Thursday.
EU joint action ‘unavoidable’
Farm Minister Istvan Nagy said on Monday that Hungary would use “all possible means” to protect its farmers from market disruptions caused by huge grain imports from Ukraine, and a joint European Union response is “unavoidable.”
Polish government spokesperson Piotr Muller told state-run news agency PAP that the government was in constant contact with the European Commission on the issue and that the ban was possible due to a security clause.
Poland and Hungary have been embroiled in long-running conflicts with Brussels over issues including judicial independence, media freedoms and LGBT rights. Both have had funds withheld due to concerns over the rule of law.
Solsky talked to Hungarian counterpart Istvan Nagy on Sunday and underlined that unilateral decisions were unacceptable, his ministry said in a statement. The two agreed to talk again soon, the source added.
The ministry on Saturday said that the Polish ban contradicted existing bilateral export agreements, and called for talks to settle the issue.
Meanwhile, a senior EU official said on Monday that European Union member countries envoys in Brussels would discuss the moves by Poland and Hungary this week.
The senior EU official, speaking under condition of anonymity, said low global prices and demand meant grain was staying in the bloc rather than being sold on.
“We expect Poland and Hungary to offer some explanation and there will also be a reaction by the European Commission,” said the official, adding that the matter was raised at the last summit of EU national leaders, including by Slovakia and Romania.
“There is an issue and we expect the Commission to come up with a proposal on that… We’ll see what we can do in the coming weeks and months.”
Transit
The Polish ban, which came into effect on Saturday evening, will in addition apply to the transit of these products through the country, the development and technology minister said on Sunday.
“The ban is all-encompassing, including the ban on transit through Poland,” Waldemar Buda wrote on Twitter, adding that talks would be held with Ukraine to create a system that ensures goods only pass through Poland and do not end up in the local market.
Poland’s Agriculture Minister Robert Telus was quoted as saying on Sunday that the ban was necessary to “open the eyes of the EU to the fact that further decisions are needed that will allow products from Ukraine to go deep into Europe, and not stay in Poland.”
The ban is due to last until June 30, the finance ministry said.
Ukraine usually exports most of its agricultural goods, especially grain, via its Black Sea ports, which were unblocked in July in line with an agreement between Ukraine, Türkiye, Russia and the United Nations.
That accord is scheduled to expire on May 18 and Moscow indicated last week that it may not be extended unless the West removes obstacles to exports of Russian grains and fertilizers.
Polish Deputy Foreign Minister Pawel Jablonski told radio station RMF that talks with Ukraine could at least relieve the tensions with farmers in central-eastern Europe.
“We want to lead to a situation where not even the smallest grain transport, which is to be exported, (is) introduced to the Polish market,” he said.
“The ultimate goal is not that the import ban will be in force indefinitely, but to ensure that grain from Ukraine, which is to be exported, goes (where it is headed),” Jablonski added.
In a letter to the European Commission last month, the prime ministers of Bulgaria, Hungary, Poland, Romania and Slovakia said there had been an unprecedented increase in shipments of products including grains, oilseeds, eggs, poultry and sugar.
They said tariffs on Ukrainian agricultural imports should be considered. States have pushed for a purchase mechanism to scoop up the cheap grain.
Jablonski said the letter had yet to receive any response.
Around 3 million tons of grain left Ukraine every month via the Black Sea grain corridor, while only up to 200,000 tons are moving to European ports through Polish territory, according to the Ukrainian ministry.
Solsky said during the weekend that 500,000 to 700,000 tonnes of various agricultural products cross the Polish border every month, including grain, vegetable oil, sugar, eggs, meat and other products.
