Ukraine to seek larger EU bioethanol quota after wheat quota request rejected

The EU is currently not ready to increase the quota for Ukrainian wheat imports or revise agricultural quotas more broadly. Following the EU’s response, Ukraine’s Ministry of Agrarian Policy is advising wheat exporters to use the available WTO tariff-rate quota.

According to Agrarian Policy Minister Taras Vysotskyi, Ukrainian exporters can use a separate EU quota for third countries totaling 2.3 mln tons. Shipments under this quota are subject to a €12/t duty.

At the same time, the Ministry plans to focus further negotiations with the EU on expanding export opportunities for Ukrainian bioethanol. Ukraine will seek additional access to the European market for around 60 thsd tons.

The Ministry argues that EU corn production, which is a key feedstock for bioethanol, has declined this year, while the bloc remains a net importer of bioethanol. In addition, Ukraine itself imports gasoline from the EU that already contains a mandatory share of bioethanol.

According to Vysotskyi, Ukraine is effectively asking for the right to export to the EU roughly the same volume of bioethanol that returns to the Ukrainian market as part of imported European gasoline. The Ministry plans to continue discussions with its European partners.

Tags: corn, EU, wheat, bioethanol, Ukraine