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Ukrainian Cereals: EU Commission Proposes 100 Million Euros to Dissenting Countries

he measure benefited Poland, Slovakia, Hungary, Romania, Bulgaria, which had blocked imports from Kiev

The funding will serve to compensate for the current “logistic bottlenecks”

Following the agreement reached with Bulgaria, Hungary, Poland, Romania and Slovakia on 28 April (see EFA News), the European Commission has presented to representatives of all Member States the proposal for a support measure worth 100 million euros. This amount, taken from the agricultural reserve for 2023, will be allocated to farmers producing cereals and oilseeds in the aforementioned five Member States.

“The support will help Member States bordering Ukraine to partially compensate for the problems related to logistical bottlenecks resulting from imports of certain agri-food products from Ukraine – reads a note from the European Commission -. In parallel, Bulgaria, Hungary, Poland and Slovakia have pledged to lift their unilateral measures on wheat, maize, rapeseed and sunflower seeds and any other products originating from Ukraine”.

The Commission proposes to allocate €9.77 million for Bulgaria, €15.93 million for Hungary, €39.33 million for Poland, €29.73 million for Romania and €5.24 million euros for Slovakia. These five countries can complement EU support up to 200% with national funds which would amount to a total financial aid of €300 million for the farmers concerned. The breakdown takes into account the weight of each affected country in the agricultural sector of the Union, based on the respective amount of CAP direct payments, as well as the relative growth of Ukrainian imports of cereals and oilseeds into those Member States.

The details of the Commission’s proposal were discussed with representatives of the Member States during a meeting of the ad hoc committee for the common organization of agricultural markets. All member states will vote on the proposal at the next commission meeting. If the measure is approved by the Member States, the Commission will adopt it. It would then be published in the Official Journal of the European Union and would enter into force the day after its publication so that the five Member States concerned could implement it without delay.

The authorities of the five Member States will distribute the aid to farmers growing cereals and oilseeds in the affected areas, taking into account the extent of their hardship and the economic damage and ensuring that they are the ultimate beneficiaries of the financial support. Payments should be made by 30 September 2023. Bulgaria, Hungary, Poland, Romania and Slovakia will have to notify the Commission of the details of the implementation of the measure, in particular the criteria used to calculate the aid, the expected impact of the measure, its valuation, and the actions taken to avoid distortions of competition and compensatory overloads.

Source: efanews