EU will not provide separate €220 mln in aid to Ukrainian farmers

The European Commission does not plan to provide the separate €220 mln in non-repayable aid to Ukrainian farmers requested by Ukraine’s Agriculture Ministry following Russian attacks on Black Sea ports. Brussels said support for the sector would instead be provided through existing mechanisms.

European Commission spokesperson Markus Lammert said the EU had outlined possible support measures under existing programs in its response to Ukraine’s request. In particular, Ukrainian farmers can already benefit from subsidized interest rates on loans under the Ukraine Facility.

The European Commission also supports lending programs through Ukrainian banks, which provide financing to businesses and agricultural producers. Brussels believes these instruments could help farms facing liquidity shortages due to export disruptions.

At the same time, the European Commission continues to assess the impact of the deteriorating security situation in the Black Sea and Russian attacks on port infrastructure. Ukraine has lost around a third of its grain export capacity through key Black Sea ports, while commercial vessel calls at Ukrainian ports virtually stopped in late July.

The EU is also discussing opportunities to expand alternative logistics through the Solidarity Lanes with Ukraine, Romania and Moldova. In early August, Ukraine asked the European Commission for €220 mln in non-repayable support to compensate interest costs on loans to small and medium-sized agricultural producers affected by disruptions to maritime exports.

Tags: Ukraine, EU, European Commission, farmers, financial aid