![]() “We’re still assessing the risks and damages,” the same source said.Īnother option promoted by Lithuania would be a Baltic corridor, but it involves two rail gauge changes, adding even more costs. That has tempered EU hopes of increasing the volume transported via the Solidarity Lanes from roughly 3 million tonnes a month up to 5-5.5 million tonnes a month by the end of the year, with the Danube accounting for up to 4 million. On Monday, Russia bombed some Ukrainian ports and silos on the Danube. Of the volume transported through neighbouring EU countries, about two-thirds move along the Danube River delta, largely through Romania, which is also the most efficient and cheapest corridor. States can give guarantees but there are no conclusive discussions,” the source with knowledge of the Commission’s discussions added, referring to the extra costs incurred due to the war risk.įor the last year, Ukraine moved 60% of its exports through the Solidarity Lanes and 40% via the Black Sea thanks to the deal. “We have no tools and to whom do you give that money? There’s also a question competition … It’s not the Commission’s role to provide (transport) insurance. The EU suspended tariffs and set up the Solidarity Lanes in May last year and the Commission, with other lenders, allocated 1 billion euro ($1.1 billion) that are still being disbursed to alleviate logistical bottlenecks and reduce some costs.Īs for direct compensation on transport, the Commission is not sure how to help. However, push-back is growing, a second diplomatic source said, as some states do not see the value in paying for the extra transport cost because of this ban. These countries have received some compensatory funds from the Commission for their farmers who were hit hard by the sudden influx of additional grain over the last year. Pressure is mounting on the European Commission to extend a ban on select Ukrainian agricultural products as the deadline for the current temporary arrangement looms – but not everyone is on board with the idea. Poland is vehemently against allowing Ukrainian grain into its market and said it was seeking a flexible ban arrangement.Įxtension of EU ban on Ukrainian agri products causes headaches among member states ![]() The five states are pushing for an extension beyond 15 September. ![]() One of the issues is the temporary ban on imports of Ukrainian grains into five neighbouring EU countries. One diplomatic source said money was very short and substantial funds could only come after the mid-term budget review that could take several more months to hash out, even with the autumn corn harvest around the corner.Ī Commission spokesperson confirmed receipt of the letter and said “we are currently assessing such requests and will reply in due course”. The letter also asked for the Solidarity Lanes to be expanded by 1-1.5 million tonnes a month through “green corridors” including to the Adriatic Sea, the Baltic States, to Germany and the Netherlands. “A lot of efforts already went to simplifying the system.” People have been scratching their heads since last year,” a source with knowledge of the Commission discussions said. “We have not found a solution yet to support the grain transport. However, there is no clear path, the sources said. This week, EU agriculture commissioner Janusz Wojciechowski said Russia could benefit by undercutting Ukraine unless the EU helped reduce the cost. ![]() Ukraine estimates the extra cost to be $30-40 a tonne. In a letter dated 21 July and seen by Reuters, Ukraine’s agriculture ministry asked EU trade chief Valdis Dombrovskis for the Commission to provide financial aid for the extra transport cost of using alternate EU routes known as “Solidarity Lanes”. The International Monetary Fund estimated a 10-15% increase in global grain prices as a result. Ukraine, one of the world’s biggest grain exporters, will now have to rely almost entirely on expensive routes through the European Union and the cheapest alternative artery, the Danube River, may not be able to expand its volume as much as hoped after bombings. Russia has already promised free grain to some of Ukraine’s African customers. Russia backed out of a UN-led Black Sea grain deal this month that allowed for the safe passage of Ukrainian cargo ships laden with cereals, oilseeds and wheat to reach global markets. The European Commission has no immediate money in the budget and no clear way to help finance the extra transport costs Ukrainian grain exports will face with the end of the Black Sea deal, sources told Reuters, leaving an opportunity for Moscow to cash in. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |