BRUSSELS/KYIV – The European Union has rejected a request from Kyiv for an additional €220 million in non-refundable support for Ukrainian farmers who are facing financial difficulties due to disruptions in exports through Black Sea ports. Instead of providing new financial assistance, the European Commission offered to utilize existing support mechanisms. This information was reported by Ukrainian media, citing a spokesperson for the European Commission, Markus Lammert.
The Ukrainian Ministry of Agrarian Policy requested approximately €220 million from the European Commission at the beginning of August. The funds were intended primarily to cover interest payments on loans for small and medium-sized agricultural enterprises that have lost the ability to regularly sell their produce and obtain necessary liquidity due to problems with maritime exports. The Ukrainian government argued that the situation threatens not only the current operations of farmers but also preparations for the autumn planting campaign. According to Kyiv, without sufficient access to financing, producers may be forced to sell already harvested grain and other commodities below market prices.
Markus Lammert, spokesperson for the European Commission, confirmed that Brussels had responded to the request from the Ukrainian side. He stated that the Commission has identified opportunities to support the agricultural sector through existing mechanisms. He added that Ukrainian farmers are already utilizing interest rate subsidies under the Ukraine Facility program. The European Commission also supports credit programs through financial intermediaries and Ukrainian banks. This decision comes at a time of significant deterioration in conditions for Ukrainian agricultural exports. According to Ukrainian media, as a result of intensified attacks and a worsening security situation, the export capacity of key Black Sea ports has decreased by approximately one-third.
At the end of July, Ukrainian Minister of Agrarian Policy Taras Vysockij stated that ships had stopped entering some Ukrainian ports due to decisions made by their owners and security risks. Subsequently, problems also arose on land transport routes. At the beginning of August, Ukrainian organizations reported serious complications at the Polish-Ukrainian border. According to available reports, nearly 6,500 trucks were waiting to depart for Poland, with waiting times reaching up to seven days. Brussels has therefore not yet approved the creation of a new special subsidy package of €220 million. Instead, the European Commission is relying on existing credit and support instruments. However, for Ukrainian farmers, the key question remains whether these mechanisms can replace the direct non-refundable assistance requested by Kyiv.