Lithuanians offer the EU to organize intervention purchases of Ukrainian grain

Centralized purchases of Ukrainian grain by the European Union with its subsequent temporary storage could be a way out of the crisis situation, when several Eastern European countries are opposed to these supplies. This opinion was voiced in an interview with the Respublika newspaper by the chairman of the Lithuanian Grain Industry Association, Ausris Macijauskas.

“We offer the EU a model for overcoming the crisis situation with Ukrainian grain. This is the EU’s intervention purchases of grain for storage,” he said.

According to the EBA Head, the proposed scheme was tested in the EU and was successful about 20 years ago when grain prices fell below the established minimum threshold.

“Then the envisaged mechanism was activated. Millions of tons of grain were purchased and stored in warehouses, and then, when prices rose, they were successfully sold,” Mr. Macijauskas said.

In his opinion, if such a scenario is implemented, the Eastern European market will “avoid unnecessary threats”.

“The average price for 1 ton of Ukrainian grain is now 100 euros. It could be bought for 150 euros and sold to North Africa for 250 euros per 1 ton after the end of the military conflict,” the expert explained.

Mr. Macijauskas also added that, according to his estimates, about 1.5 billion euros would be needed to implement this plan.

“On the EU scale, this is not too much money,” he summarized.

Tags: Lithuania, Ukraine, grain, EU