EU responds to Ukraine's request for €220 million for farmers amid port blockade

The European Commission has effectively refused a request from Ukraine's Ministry of Agrarian Policy to provide Ukrainian farmers with €220 million in non-refundable aid over Russian attacks on Black Sea ports, stating that the EU is already providing assistance through existing mechanisms.

Source: a European Pravda correspondent in Brussels

Details: "We can confirm that we responded to the recent letter from Ukraine's agriculture minister. In our response, we identified areas of possible support for Ukraine's agricultural sector using already existing mechanisms," European Commission spokesperson Markus Lammert said.

He recalled that Ukraine "is already receiving interest rate subsidies on loans for farmers through the Ukraine Facility, so Ukrainian farmers are already receiving support within the framework of the Plan".

Lammert added that the European Commission also supports lending programmes through intermediaries for Ukrainian banks, which in turn provide loans to entrepreneurs and especially farmers.

"These programmes can provide assistance to farmers who find themselves in a difficult liquidity situation," the spokesperson said.

He also asserted that the European Commission remains in close contact with the Ukrainian authorities on this issue, including to assess the situation in the Black Sea and the consequences of the maritime blockade caused by Russian shelling.

"The Commission also maintains contacts with Romania, Moldova and the Ukrainian authorities, including with companies, to assess the situation regarding alternative transport routes through the Solidarity Lanes," the official added.

Background:

• At the beginning of August, Ukraine's Ministry of Agrarian Policy asked the European Commission to consider allocating €220 million in non-refundable support to compensate interest on loans for small and medium-sized Ukrainian agricultural producers.
• Due to intensification of Russian attacks, Ukraine has lost approximately a third of its capacity for grain exports through key Black Sea ports.
• At the end of July, vessels stopped entering Ukrainian ports due to the deteriorating security situation. President Volodymyr Zelenskyy also warned that Russia would intensify pressure on the maritime corridor.
• On 20 July, Moldova's government held an expanded session on the transit of Ukrainian grain, as the Association of Grain and Oilseed Exporters in Moldova fears that transit from Ukraine will lead to an overloading of Moldova's railway network.

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