Ukraine’s Ministry of Agriculture asks the EU for €220 mln in support for the agricultural sector

Ukraine’s Ministry of Agrarian Policy and Food has appealed to the European Commission to provide €220 mln in non-repayable assistance to subsidize interest payments on loans for small and medium-sized Ukrainian agricultural producers.

The funding is intended to provide farmers with the financial resources needed to continue operations and carry out the autumn sowing campaign, the ministry’s press service reported.

“Due to Russia’s blockade of maritime exports, thousands of Ukrainian farmers are unable to sell the crops they have already produced and obtain the funds needed to continue operating. That is why we have asked the European Commission to support Ukrainian producers by subsidizing interest payments on loans,” said Ukraine’s Minister of Agrarian Policy, Taras Vysotskyi.

According to the Ministry, the agricultural sector is expected to generate around €6.4 bln in revenue during the marketing year, while operating costs are projected to reach €11.2 bln.

By November, the value of unsold inventories could reach nearly €10.8 bln, while the sector’s minimum working capital requirement is estimated at approximately €4 bln.

Ukraine is therefore asking the EU to allocate €220 mln in non-repayable support to subsidize interest rates under the “Affordable Loans 5-7-9%” program.

The initiative is expected to create a loan portfolio of up to €4 bln to finance farmers’ working capital, with a final borrowing rate of no more than 10% per year.

The support will be available to small and medium-sized agricultural producers that meet the program’s eligibility requirements and environmental, social, and governance (ESG) criteria.

“The funding will enable farmers to finance wages, land leases, crop storage and post-harvest handling, as well as preparations for the new sowing campaign. It will also reduce pressure on the EU’s border infrastructure and help preserve Ukraine’s export potential until Black Sea ports resume operations,” the Ministry stated.