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Ukraine agriculture to lose $227mln monthly after Eastern Europe ban

  • By Al Mayadeen English
  • Source: Agencies
  • 24 Sep 2023 13:21
  • 1 Shares
3 Min Read

The main losses from the embargo will come from corn, which garnered about $100 million per month on average at the end of last year.

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  • Combines harvest wheat at a farm near Kramatorsk, in Donetsk region, Ukraine, on August 4, 2023 (AFP)
    Combines harvest wheat at a farm near Kramatorsk, in Donetsk region, Ukraine, on August 4, 2023 (AFP)

As a result of the embargo set by Slovakia, Hungary, and Poland on agricultural products, Ukraine may suffer a loss of over $227 million a month, which is almost as much as it earns on gas transit per quarter, according to Sputnik's calculation using data from the countries' statistical services.  

The embargo from Poland includes wheat, corn, wheat flour, rapeseed, and sunflower seeds, and between September and December 2022, Poland purchased an average of $112 million of them from Ukraine monthly. 

Per Sputnik's analysis of the company's reporting, Ukrainian energy company Naftogaz gained $234.4 million for gas transit per quarter last year.

The embargo by Hungary is due to impact 24 products, including grain, some seeds, sugar, oil, and honey, which will cost Ukraine $89 million per month - the average amount Hungary spent on goods from Ukraine during the end of 2022.

Read more: Europe thinking twice about Ukraine aid ahead of regional elections

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As for Slovakia, it banned the import of just wheat, corn, rapeseed, and sunflower seeds, which Ukraine exported $26.4 million worth of last year.  

'Never insult Poles again'

The main losses from the embargo will come from corn which garnered about $100 million per month on average at the end of last year, while the second would be rapeseed with an average monthly import of $74.5 million, and sunflower seeds with $25.6 million.  

The ban comes as an extension of a ban on duty-free Ukrainian grain imports to the European Union after EU-imposed curbs fell through on September 15, prompting Ukrainian Deputy Economy Minister Taras Kachka to call the decision unlawful and thus Ukraine filed a complaint with the World Trade Organization (WTO).

During his address at the United Nations General Assembly in New York, Ukrainian President Zelensky accused Russia of weaponizing food and energy after criticizing "some friends" in Europe for "false solidarity" and playing along with Russia.

As a response, Polish Prime Minister Mateusz Morawiecki announced that Poland would no longer be supplying Ukraine with weapons and warned Zelensky to "never insult Poles again."

Poland has been one of, if not the most, vocal nations to speak up on Ukrainian agriculture. Back in July, Morawiecki said "Either the European Commission agrees to develop a general regulation that will extend this ban, or we will do it ourselves. We will be firm, we will be decisive and we will definitely defend a Polish farmer."

  • Hungary
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  • Slovakia
  • Ukraine

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