EU is considering the possibility of returning the quota for bioethanol imports from Ukraine in the amount of 100 thsd tons

The European Union is considering the possibility of returning the quota for bioethanol imports from Ukraine in the amount of 100 thousand tons. This was announced by Taras Mykolaenko, executive director of the Ukrbioethanol association.

He believes that such an initiative looks unfounded, given several weighty arguments.

The first is Ukraine’s negative trade balance in the 22nd group of the Ukrainian Customs Union of Foreign Economic Activities (alcoholic, non-alcoholic beverages, vinegar). According to the State Statistics Service, from 2017 to 2024, imports of products in this group increased from $309 million to $484 million, while exports only reached $180 million, mainly in the form of raw materials.

“And despite these figures, they still want to introduce a quota for us,” Mykolaenko emphasizes.

The second argument he calls the role of bioethanol in the fuel sector. It was expected that in 2025 Ukraine would export 160 thousand tons of bioethanol to the EU, in particular thanks to the launch of a modern plant in Gorodok, Lviv region. Part of this volume — about 80 thousand tons — was to return to Ukraine as part of finished gasoline containing 5% ethanol, according to new requirements that came into force on May 1, 2025.

“And we will import this bioethanol from Polish plants. That is, even just due to this volume, there should have been an increase. And now they are simply blocking our exports,” the expert adds.

Mykolayenko also points to the unprofitability of bioethanol production from corn.

“Corn — €230/ton, ethanol — €580/ton. Minus €300/ton. Many Ukrainian plants are no longer launched due to unprofitability,” he says.

According to Mykolaenko, only production from molasses remains profitable at the moment.

As for alternative sales markets, Switzerland and the UK are among the potential destinations. However, the UK has signed a free trade agreement with the US, which has effectively opened its market to cheap American ethanol. This has already led to the shutdown of three European plants.

Given the limited logistical capabilities of sea exports in wartime, access to the EU market remains practically unalternative for Ukrainian producers.

Recall that in March, Deputy Minister of Economy of Ukraine – Trade Representative of Ukraine Taras Kachka stated that Ukraine exported 100 thousand tons of bioethanol to the European Union last year, and this may cause concern among European producers, since certain interest groups in the European Union have already expressed their position to the European Commission.

Tags: Ukraine, corn, EU, restrictions