Ukraine may lose 3.5 billion euros a year if EU trade privileges end, lawmaker says
KYIV - The end of preferential trade with the European Union in June could deprive Ukraine of 3.5 billion euros ($3.92 billion) in annual revenue, a hole other markets will be unable to fill, a senior Ukrainian lawmaker said on Friday.
The EU temporarily waived duties and quotas on Ukrainian agriculture after Russia's full-scale invasion and the measures are due to expire on June 5. EU diplomats said on Wednesday the bloc was weighing a return to its pre-war trade agreement with Ukraine while it negotiates a new deal with Kyiv.
The head of the parliamentary committee on finance issues Danylo Hetmantsev said on the Telegram messenger that corn, sugar, honey and poultry producers would be hit hardest.
"According to expert estimates, the new trade conditions following the end of the 'economic visa-free regime' could cost us 3.5 billion euro annually," Hetmantsev said.
He did not elaborate on the source of the estimates.
"This is a significant blow – in 2025, total monthly exports of goods averaged 2.9 billion euro, and it is practically impossible to compensate for such losses in agricultural exports in other markets," he said.
Ukraine's finance minister said on Wednesday he was in talks with Brussels to renew the emergency measures but the European Commission said no extension was planned.
EU farmers have repeatedly protested against a sudden influx of cheaper products from Ukraine and the Commission introduced "emergency brakes" on imports of poultry, sugar, oats, maize, groats, and honey if these exceed the yearly average in 2021-2023.
The Commission has also been eyeing a sharp cut to Ukrainian sugar imports amid complaints that large shipments have fuelled a collapse in prices. REUTERS
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