EU plans farmer support, import curbs on Ukraine grain

The European Union is preparing 100 million euros ($109.32 million) in compensation for farmers in five countries bordering Ukraine and plans to introduce restrictions on imports of Ukrainian grains.

Pressure has mounted on Brussels to work out a European Union-wide solution after Poland and Hungary banned some imports from Ukraine last weekend and other eastern European countries said they were considering similar action.

The countries became transit routes for Ukrainian grain that could not be exported through Ukraine's Black Sea ports because of Russia's invasion in February 2022.

Bottlenecks then trapped millions of tons of grains in countries bordering Ukraine, forcing local farmers to compete with an influx of cheap Ukrainian imports which they said distorted prices and demand.

The European Commission said on Wednesday it would take emergency "preventive measures" for wheat, maize, sunflower seeds and rape seed after a joint complaint from Bulgaria, Hungary, Poland, Romania and Slovakia at the end of March.

An EU official said this would only allow the grains to enter the five countries from Ukraine if they were set for export to other EU members or to the rest of the world. This measure would last until the end of June.

Separately, the European Commission, which oversees trade policy for the 27-nation EU, plans an investigation into whether measures are required for other sensitive products.

While the emergency measures can enter force within days, an EU investigation typically lasts six months.

European Trade Commissioner Valdis Dombrovskis discussed the plans on Wednesday with ministers from Bulgaria, Hungary, Poland, Romania and Slovakia, as well as with Ukrainian counterparts.

Romanian Farm Minister Petre Daea said Dombrovskis asked Bulgaria, Hungary, Poland and Slovakia to withdraw their individual import bans and that the Commission could approve a general ban of Ukrainian grain and oilseeds to the five countries affected until June 5.

Romania is the only country of the five affected that has not enforced a ban.

"We agreed today that we will continue these talks ... The next meeting will be at the beginning of next week - Monday, Tuesday," Polish Agriculture Minister Robert Telus told state-controlled broadcaster TVP Info.

"We, as frontline countries, will want to convince the European Union that we also want to protect other products," he said, without providing further details.

Under the EU-Ukraine free trade agreement of 2016, imports of the most sensitive farm products from Ukraine were subject to tariffs and quotas. After Russia invaded Ukraine, the EU agreed to suspend all tariffs until June 2023 and the Commission has proposed extending this suspension for another year.

Poland, which is especially under pressure from its agricultural lobby in an election year, banned all grain imports, but agreed to allow grain to transit after discussions with Ukraine.