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Reuters
5 days ago
- Business
- Reuters
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
BRUSSELS, June 6 (Reuters) - The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal - in which Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities around sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. ($1 = 0.8763 euros)

Straits Times
5 days ago
- Business
- Straits Times
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions BRUSSELS - The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.


Reuters
03-06-2025
- Business
- Reuters
Ukraine plans to boost food processing as preferential EU trade ends
KYIV, June 3 (Reuters) - Ukraine plans to change its policy on agricultural exports to adapt to the expected end of free access to the lucrative EU market, potentially reducing raw material exports while stepping up domestic food processing, its farm minister told Reuters. Agricultural goods accounted for about 60% of Ukraine's total exports of $41.6 billion last year, with the European Union buying around 60% of those goods, worth about $15 billion. The EU temporarily waived duties and quotas on Ukrainian agriculture after Russia's full-scale invasion in 2022, but that arrangement is due to expire on June 5. With EU farmers lobbying hard for restrictions to be placed on cheap Ukrainian competition, the free trade regime is set to be replaced by quotas, the final volume of which should be agreed between Ukraine and the EU by the end of July. A senior Ukrainian lawmaker said last month that the end of EU preferential trade could deprive Kyiv of 3.5 billion euros in annual revenue, a hole other markets will be unable to fill. Asked how Kyiv would cope, farm minister Vitaliy Koval said in an interview: "There will definitely be changes in export policy, and they will be driven by cold calculation, as we understand that we will suffer losses if the trade regime (with the EU) changes." He did not specify what measures might be taken, but said domestic production was a "matter of national interest" and the government's strategy. Currently, Ukrainian farm exports are not taxed, but oilseed processors have already proposed that the government limit the export of oilseeds in order to increase domestic production of vegetable oil. That could boost exports of processed oils, which are more profitable than raw material oilseeds. Koval said Ukrainian oilseed processing plants were working at only about 65% of capacity and his ministry was "exploring all ways to utilise our Ukrainian processing plants in order to create additional value and processing products". Ukraine traditionally exports about half of its soybean harvest and the major part of its rapeseed harvest. Koval said Ukraine needed to do more to take advantage of its own raw materials. "If someone thinks that we can be forced by certain methods into becoming a natural resource-supplying colony, which will supply the raw materials that are favourable to someone - that will not happen," he said. Koval added that Ukraine was pushing for an agreement with the EU on better terms than it had before the war. "There will definitely be quotas, we hope there will be an expansion of quotas compared to 2021," he said. ($1 = 0.8780 euros)


Reuters
03-06-2025
- Business
- Reuters
Exclusive: Ukraine's 2025 grain harvest may fall 10%, minister says
KYIV, June 3 (Reuters) - Ukraine's 2025 grain harvest may decrease by 10% to around 51 million metric tons compared to 56.7 million tons in 2024, according to the most pessimistic estimates, Ukrainian agriculture minister Vitaliy Koval said on Tuesday. Ukraine is a global producer of grains and oilseeds, but the harvest is highly dependent on favourable weather conditions during both the autumn sowing and spring months. Military risks associated with the ongoing Russian invasion are also reducing output as farmers are afraid or unable to plant and harvest crops. Significant areas have also been seized or mined. "A difficult season awaits us. An abnormally warm winter, first there was no humidity, then prolonged rains delayed the sowing campaign in some regions for two weeks. Therefore, we expect a decrease in the harvest," Koval told Reuters. "The most negative forecast is minus 10%. According to expectations the harvest of grain is minus 10%, oilseeds minus 5%. It's definitely not a failure, but God willing we will harvest everything," he said. Giving the first detailed forecast, for 2025 Koval said Ukraine could harvest around 26 million tons of corn, 4.5 million tons of barley, 1.5 million tons of minor grains, 11.5 million tons of sunflower seeds, and 11 million tons of sugar beet. He said the wheat harvest may be between 20 and 22 million tons and the final figure would depend on weather and war-related factors. Koval said the 2025 overall oilseed crop could decrease to around 20.16 million tons from 21.18 in 2024, partially due to a decrease in the rapeseed crop by 600,000 tons. Ukraine is the world's largest sunflower oil exporter. The minister declined to provide Ukraine's 2025/26 grain export forecast, based on an as yet unclear final harvest figure, but analysts say exports will total 40.9 million tons, including 15 to 15.5 million tons of wheat. Analyst ASAP Agri said last week Ukraine's wheat exports were expected to fall in the 2025/26 July-June season due to possible changes in the EU's import policy, uncertain harvest prospects and a better crop outlook in EU importing countries.
Yahoo
20-03-2025
- Business
- Yahoo
Italy and Ukraine partner on $11.9 million project to revitalize agriculture and food security in Odesa Oblast
Italy signed an agreement with Ukraine to launch the 11 million euro ($11.9 million) project, aimed at promoting sustainable agricultural development and food security in Odesa Oblast, Agriculture Minister Vitaliy Koval reported on March 19. The project will provide local farmers, breeders, and cooperatives with new tools, technologies, and sustainable irrigation systems to strengthen production and organizational capacity. "Italy confirms its support with a concrete project aimed at strengthening food security and promoting sustainable agricultural development," Italian Ambassador to Ukraine Carlo Formosa said. Koval highlighted that this marks another step toward the recovery of Ukrainian agriculture and strengthening cooperation with the EU. 'I am grateful to Italy for its continued support and joint work on food security!' Koval said on Telegram. Last month, Rome signed an agreement with Kyiv to provide Ukraine with 13 million euros ($13.5 million) directed towards the country's Energy Support Fund. Read also: Italy does not plan to send peacekeepers to Ukraine, remains committed to 'effective security guarantees' We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.