Poland, Hungary Stop Imports of Grain and Food from Ukraine

Poland and Hungary decided to ban imports of grain and other food products from Ukraine to protect local agriculture, the two governments said on Saturday after a flood of supply depressed prices across eastern Europe. After Russia invaded Ukraine in February last year, large quantities of Ukrainian grains, which are cheaper than European Union products, ended up staying in central and eastern European states due to logistical bottlenecks, causing prices to plummet and hit sales of local farmers. In a letter to the European Commission last month, the prime ministers of five eastern European countries said the scale of the increase in products like grains, oilseeds, eggs, poultry and sugar had been “unprecedented”, and said tariffs on Ukrainian agricultural imports should potentially be considered.

Ukraine said it regrets Poland’s decision, adding that “resolving various issues by unilateral drastic actions will not accelerate a positive resolution of the situation”.

The impact of the oversupply has created a political problem for Poland’s ruling Law and Justice Party (PiS) in an election year, with the economy mired in stagflation.

“Today, the government has decided on a regulation that prohibits the entry, importation of grain into Poland, but also dozens of other types of food (from Ukraine),” PiS leader Kaczynski said during a party convention.

Kaczynski said the list of goods in the government regulation would include many products.

Ukraine’s ministry of agrarian policy and food said the Polish ban contradicted existing bilateral agreements on exports, and called for talks to settle the issue.

“We understand that Polish farmers are in a difficult situation, but we emphasize that Ukrainian farmers are in the most difficult situation right now,” it said in a statement.

Later on Saturday, Hungarian government imposed its own ban, saying the status quo would cause severe damage to local farmers.

Hungary did not give details on when its ban on grain and other food imports would go into effect, but said it will expire at the end of June.

Hungary’s government said it hoped for changes in regulation at the EU level, including a re-thinking of the elimination of import duties on Ukrainian produce.

Poland’s Kaczynski said: “We are and remain unchanged friends and allies of Ukraine. We will support her and we support her. … But it is the duty of every state, every authority, good authority in any case, to protect the interests of its citizens.”

Kaczynski underlined that Poland was ready to start talks with Ukraine to settle the grain issue.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

India’s Essar Launches New Unit for $3.6 Billion Low-Carbon Projects in India, UK

Indian multinational conglomerate Essar Group said on Monday it has launched a new unit, called Essar Energy Transition (EET), that will control its various businesses and its $3.6 billion low carbon projects in India and the UK over the next five years. The company had sold some of its Indian assets in telecommunications, oil refining and steel over the years to settle its debt. It has also turned its focus on creating new environmental, social and governance compliant businesses to cut emissions from existing projects.

Chinese Brands Fill the Void Left by the West in Russia’s Car Market

Chinese car brands have taken a third of Russia’s car market share as the Western companies have left the country in the aftermath of Moscow’s invasion of Ukraine. The automotive sector more than any other shows China’s growing presence in Russian economy following the exodus of Western companies. Although new sales of passenger cars and light commercial vehicles (LCVs) in the country have fallen by 61% compared to the previous year, sales of Chinese brands have surged, rising to more than 16,000 units in November, almost doubling January figures. Chinese brands’ market share has risen from 9.6% to 31.3%. 

Graphite Prices Set to Soar, Causing Another Headache for EV Makers

Automakers and battery manufacturers have faced with an eight-fold surge in lithium prices, volatility on the nickel market and political concerns around DR Congo cobalt supply. Many companies have been looking to make downstream deals to secure supply for their ambitious expansion plans. While trading at a fraction of other battery minerals, graphite could make a jump in the near future as well, mounting on the distress of the EV industry. 

Stay informed

error: This content is protected !!