EU looks at all possible routes to boost Ukrainian grain exports
The European Union is looking at all possible routes to support grain exports from Ukraine amid disruptions to Black Sea shipments. EU Agriculture Commissioner Christophe Hansen said the bloc remains in talks with Ukraine and neighboring countries on expanding alternative logistics.
The EU Solidarity Lanes remain one of the key options, although efforts to increase shipments are being complicated by low water levels on the Danube. Alternative export routes are therefore becoming increasingly important as Black Sea shipments remain constrained.
Ukraine’s export difficulties coincide with lower agricultural production in the EU due to severe heat and drought. Hansen said the EU, as a major agri-food exporter, plays an important role in global food security, warning that lower European production could result in shortages elsewhere in the world.
The European Commission is also working on measures to support EU farmers affected by adverse weather. Options include invoking force majeure for some farms, easing certain funding requirements, providing additional support under an emergency fertilizer action plan and bringing forward payments under the Common Agricultural Policy.
The situation comes amid a sharp rise in global agricultural prices. Wheat and corn benchmarks have climbed to multi-year highs due to weather risks and disruptions to Black Sea supplies, while the Bloomberg Agriculture Spot Index rose more than 13% in August, its biggest monthly increase in more than a decade. Against this backdrop, increasing Ukrainian grain exports is seen by the EU as one way to support supplies to the global market.
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