Ukraine may not use additional EU wheat quota due to logistics

Ukraine may use the EU’s general wheat import quota for third countries after nearly exhausting its separate quota for Ukrainian wheat. However, expensive and complicated logistics could prevent a significant increase in shipments to the EU.

As a WTO member, Ukraine is eligible to use the general quota, but applications must be submitted by European importers. Some partners of Ukrainian exporters have already filed applications, although no confirmed shipments have been reported so far.

Ukrainian companies have explored the possibility of increasing wheat supplies to the EU from around 1.3 mln tons to 2 mln tons. However, the actual use of the additional volume will depend on whether European importers receive the necessary permits.

Logistics remains the main constraint. Shipping wheat by road to Western Europe is economically unattractive when the €12/t import duty is taken into account, while the sea route through the ports of Greater Odesa is currently unavailable.

According to Agriculture Minister Taras Vysotskyi, Ukraine could use the additional quota if its ports were operating normally, as Spain, the Netherlands and Italy are among the main buyers of Ukrainian wheat. For now, however, it is logistically easier to ship grain via Constanța to Turkey, Egypt or Algeria.

Tags: EU, wheat, imports, logistics, blocking ports, Ukraine