Following Russia’s unilateral decision in July to terminate the Black Sea Grain Initiative, which allowed agricultural products to be exported from Ukrainian ports, transit through the Solidarity Lanes established in states bordering Ukraine is expected to increase significantly (from three to five million tonnes of commodities per month). Almost all of the exported commodities via these corridors remain on the EU market due to the high transport costs for re-export. MEPs debate with the Commission the impact of Ukrainian grain exports on EU farmers after Russia’s withdrawal from the Black Sea Grain Initiative. Opening statement by Janusz WOJCIECHOWSKI, European Commissioner for Agriculture This transcription is a result of an automatic process. Please check against delivery.

EU - Ukraine (T)

statement

Strasbourg

debate

plenary session

WOJCIECHOWSKI, Janusz (ECR, PL, EC)

Ukrainian grain exports after Russia's exit from the Black Sea Grain: opening statement by Janusz WOJCIECHOWSKI, European Commissioner for Agriculture

https://api.multimedia.europarl.europa.eu/documents/20125/72046625/1694180218300_I245545Chapters%5BSD-EN%5D.srt

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Thank you very much, Madam President, Honourable Members, I very much welcome today's opportunity to exchange views on the export of Ukrainian grains to the European Union and the world. Agricultural exports are a key importance for global food security. As we all know, in addition of thousands of innocent casualties to major war destruction.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Russia's criminal aggression against Ukraine has also coast disturbance on global food markets. Russia wanting to use food as a weapon, has been systematically attacking Ukrainian infrastructure, warehouses and logistical hubs for grain trade. These attacks on Danube ports have been intense last week.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, In July, Russia has against completely blocked Ukrainian grain exports from the Ukrainian Black Sea, depriving Ukraine of its most economical export role to traditional markets and to where grains are needed most, as in Africa and Asia.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, The Solidarity Lanes play a vital role, and they have delivered. Between May 22 and July 23, the Solidarity Lanes have thus allowed Ukraine to export nearly 88 million tonnes of goods for a value of €35 billion. 44 million tonnes of those goods were grain, oilseeds and related products. They also allowed Ukraine not to import over 31 million tons of goods for a value of €64 billion.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, In the spring, concerns have been voiced on the impact of the local markets in the neighbouring Member States, Bulgaria, Hungary, Poland, Romania and Slovakia. The Commission have acted and put in place the exceptional and temporary preventive measures to stop the direct import for four grains, maize, wheat, rapeseed and sunflower.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, This preventive measures do not halt transit for neighbouring countries. I want to reassure that the Commission is closely monitoring the situation in collaboration with the neighbouring Member States, Ukraine and Moldova. Financial support packages for farmers under the agricultural crisis reserve have been adopted to help and we have been working to ensure that the Ukrainian grains moves to those place within the Union and in the world where it is needed.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Honourable Members, I have maybe a few additional information about the scale of the of the aid for the farmers in the countries affected by this crisis situation. The Commission decided to use to activate the agricultural crisis reserve, especially for five Member states affected by this situation.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, The total amount was €156 million, just about the 17 million for Poland, 40 for Romania, 26 for Bulgaria, 16 for Hungary and 5 for Slovakia. Agriculture was included. It was my own initiative to the system of state aid for the for the companies affected by the water situation. Agriculture was included into the system.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Thanks this decision, the scale of the support was just above the €3 billion for the farmers affected in Poland; 343, a million in Bulgaria; €305 million in Hungary; 100 in Slovakia; and 44 in Romania. The scale of the state aid in Poland, ten times the Commission approved state aid scheme for the Polish farmers. This is historic record, never in the past. There is no country with higher support for the farmers affected by the by this situation caused by the import of grain from from Ukraine.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, And to ensure Solidarity Lanes, full function you can keep increasing their capacity, Commission President, von der Leyen and President Zelensky of Ukraine, set up a joint coordination platform. This platform has been working to remove operational obstacles and to increase the capacity along the Danube, the most economical transport corridor.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, To put this in perspective, from the beginning of May to the end of July 23, during the implementation of the exceptional safeguard measures in the five countries, Ukraine exported a total of 9.6 million tonnes of grain, or about 3.2 million tonnes per month from the Solidarity Lanes. This is higher than the average export volume of solidarity lane in the period May 22, April 23. Not least because the Black Sea port export stopped being available.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Maybe, ladies and gentlemen, maybe some additional figures, because this is very important. In the last 15 months, we have the last available data from July this year, May 22 July 23. Ukraine exported via Solidarity Lanes only, which means by the border of the five frontline Member States and by the territory of this this country's. The total export of grain cereals.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Oilseeds was 44 of 44.4 million tonnes of grain. And in the period before establishing this preventive measures, May 22, April 23, the amount was 34.8 million tons, which means statistically £2.9 million per month. In this period after the introduction of this preventive measures may. June and July 23. As I said, the volume of export was 9.6 million tonnes, which mean means 3.2 million tonnes per month.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, This preventive measures were effective, efficient and supporting stabilising market. In this fight frontline Member States and also increasing supporting to increase Ukrainian exports via solidarity lines. This is the main arguments for prolongation of the these preventive measures, which is my strong position which I presented in in and also during the debate in the Agricultural Committee two weeks ago in the European Parliament.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Let me give you an overview of recent developments. We have put a lot of efforts around the Danube corridor, which led to reducing the logistic costs, which, according to some stakeholders, have decreased by almost 50% between July 22 and March 23 on the Danube Road. We trust that these efforts will also lead to a stable capacity of 3 million tonnes per month in September and 4 million tonnes per month by the end of the year.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Neighbouring Member States, especially Romania, but also Moldova, have put a lot of efforts into putting in place investments and measures to ensure smooth trade and increase export roads capacities. For instance, we welcomed the work to create Green Lane for road transit between Ukraine and Romania in both directions for Moldova.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, We have been working on reducing waiting times, the borders, promoting that the checks are done farther away and that these are well managed customs missions have taken place and staffing has been reinforced. The European Bank for Reconstruction and Development works on water insurance pilot schemes for inland transit activities, protecting imports and exports, along with the Solidarity Lanes as well as river and seaborne shipping vessels.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Moreover, we have been looking at boosting the role of the alternative roads and corridors leading to Baltic and Adriatic seas. The capacity is more limited, but given the security situation and the good harvest alternatives to the done approach are needed. Honourable Members, The problem is.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, That the transit, for example, via Poland is not the question of infrastructure is the question of the cost. Because this is not the closest road that to the traditional Ukrainian markets. The road is not to the Indonesia, for example, to Egypt. The road is not via Poland. It can be, but it requires additional costs.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, And this is I presented the proposal, which will be tomorrow discussed on the platform coordination platform that is necessary to financially support this additional cost of transit. The according the Ukrainian calculation, that requires amount between 20 and €40 per ton partner to to support the cost to compensate the additional cost of transit.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, This is very important for diversification of this this transit direction because now the main the main road is Romania. But there is the chance also to use the Baltic ports to use Adriatic ports, but it requires additional additional financial costs have. From that from a more midterm perspective, we've also been looking at infrastructure investment to improve land connections to Ukraine. Road and rail and border crossing along the Solidarity Lanes have received considerable funding, exceeding the initial pledge of €1 billion made in November 2012 by the Commission, the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, Additional €890 million are available from different funding streams, including the Connecting Europe Facility programme and the European Union's cohesion policy. The objective of all the ongoing work is to ensure that the transit of Ukrainian grain does not create challenges in the Union. To ensure that transit of Ukrainian grain does not create challenges in the Union. It is extremely important to note that there is no evidence to suggest the contrary.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, President, to conclude, we have been investing significant efforts and resources, ensuring that Ukrainian grain can be exported and moved to where is the most needed. We have an assured support to European Union farmers.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, The introduction of the temporary preventive measures have structured and stabilised the market in border countries. It has not restricted export of Ukrainian grains through solidarity links. There is also evidence at our disposal that suggests that provided there is a good will and continued efforts.

SOUNDBITE (English), Janusz WOJCIECHOWSKI, European Commissioner for Agriculture, There is sufficient logistical capacity to transport the upcoming harvest in Ukraine. It is against this background that we will decide on the appropriate measures to further ensure the transit of Ukrainian grains from the neighbouring Member states while avoiding logistical bottlenecks. I look forward to hearing your views today. Thank you very much.