17:51 24.07.2023

Ukraine asks to subsidize transit of agricultural products to distant ports within 30 EUR/tonne – Ministry of Agrarian Policy

3 min read
Ukraine asks to subsidize transit of agricultural products to distant ports within 30 EUR/tonne – Ministry of Agrarian Policy

The amount of subsidies for the transportation of Ukrainian agricultural products to distant ports in the amount of 30 EUR/tonne can significantly speed up and make exports more dynamic in the 2023 season, Minister of Agrarian Policy and Food Mykola Solsky said on Saturday during the United News marathon.

Solsky recalled that the prospect of using ports far from Ukraine was considered last year. In the summer of 2023, in anticipation of a new harvest, government representatives held negotiations with the European Union and asked to compensate for transit to the ports of Lithuania and Latvia, Germany, the Netherlands, as well as the Adriatic ports of Croatia, Slovenia and Italy.

As an example, the minister named the cost of transit of Ukrainian agricultural products in wagons from the border of Ukraine to the port in Gdansk in the amount of 40 EUR/tonne, and in Hamburg - EUR 70/tonne. He recalled that prices are constantly changing, as this is a market that depends on seasonality and many other factors.

"We believe that compensation of EUR 30/tonne is basically similar in all areas. This is something that will add dynamics (to transportation) and solve many issues," he said.

Solsky recalled that Ukraine has been working with the export of grain through the Danube ports since April 2022. According to the minister, many decisions have been made and are planned to be made through this distribution channel - constant work is underway. In particular, a dredging of 1 meter was carried out, which made it possible to carry out many transshipments. There are agreements with Romania, and also during the last month, agreements on additional transit appeared with Bulgaria and an additional discount was received.

Speaking about the shelling of the ports of Odesa and the destruction of the port infrastructure with grain, Solsky said that a delegation from China flew to Warsaw last week, and the work of the Ukrainian-Chinese working group to open the export of new commodity items was resumed. During its meetings, the export of grain was also discussed.

"I can say for sure that China, like any grain importing state, is not at all happy that the number of countries from which they will receive grain is decreasing. This entails a reduction in choice and an increase in prices within the country. This is a serious loss, since Ukraine is a traditional partner of high-quality grain for China. Such a large country with a pragmatic approach to its affairs understands this and obviously gives some signals to where it should send them," he concluded.

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