The Russian invasion of Ukraine is causing tensions between Kyiv and some of the neighbouring European countries. Slovakia, Poland and Hungary have all introduced a ban on the import of various agricultural products generated in Ukraine, many of which travelled on rail.

The three countries are lamenting the lack of solid European Union (EU) regulations to protect their farmers. The main issue is that the EU’s trade liberisation and other concessions to Ukraine, implemented in May 2022, are damaging the agricultural sector in all three European countries. The initiative entails the suspension of import duties, quotas, and trade defence measures. This policy is due to expire in less than two months, and the European Commission already proposed to extend it for another year in February.

On the other hand, Ukraine is dealing with blockades at its ports on the Black Sea and therefore needs alternative outlets for its massive agricultural production. During the first phase of the war, railway companies from all over Europe came to the rescue providing services specifically for the exports of grain from Ukraine into the EU. However, the situation seems to have changed, with neighbouring European countries now seemingly willing to prioritise their national interests.

Poland and Ukraine

On 15 April, Poland implemented a ban on the import of some Ukrainian products and it has said it will keep it in place until 30 June. The ban includes goods such as cereals, seeds, and meat, among others. Despite implementing the ban on the same day as Hungary, Poland was the first of the three countries to take measures to slow down the imports of Ukrainian agricultural products, especially grain.

At the end of February, for example, Poland prohibited the export of grain from Ukraine to Poland via the Izov-Hrubieszów rail border crossing, one of the most used when it comes to grain shipments. Around the same time, veterinary border controls at all border crossings between the two countries have significantly increased, causing notable delays and queues. At first sight the situation seemed to improve after Poland and Ukraine introduced a new customs seal for grain transportation on 6 March. However, the situation has rather worsened.

From bad to worse

The Polish ministry of justice said at the end of March that the current conditions, if extended for another year, might bring sectors of the Polish agro-industry to the ground. “Compared to 2021, grain imports to Poland in 2022 increased by nearly 3,800 per cent. As for rapeseed, an increase of almost 700 per cent was recorded in the same period”. This, as the Ministry said, has a significantly negative impact on Polish farmers, who cannot compete with the prices that Ukraine is able to set thanks to aid from the EU. The Ministry also asked its Prime Minister to apply for the EU safeguard clause. This clause gives countries the opportunity to implement measures to prevent serious and imminent breaches of the functioning of the internal market.

The Ukrainian ministry of agriculture responded to the Polish ban by saying that it regrets this decision, which contradicts previous agreements between the two countries. “Last week we agreed that four crops (wheat, corn, sunflower seeds, and rapeseed) will be transported through Poland only by transit until 1 July 2023”, the Ukrainian Ministry of Agriculture pointed out. However, the list of banned products is now much longer than those four items. On the other hand, it seems as if this issue is becoming a contest of who is in a worse position. “We understand that Polish farmers are in a difficult situation, but we emphasise that Ukrainian farmers are in the most difficult situation right now”, the Ukrainian ministry commented.

Hungary and Ukraine

Hungary banned the import of Ukrainian agricultural products, including grain and oilseeds, on Saturday 15 April until at least 30 June, taking the same initiative as Poland. RailCargo Group stated that Hungary was the main transit route for Ukrainian agricultural cargo. The Hungarian ministry of agriculture underlined the need for extraordinary measures “in the absence of meaningful EU measures”. The ministry stressed that the EU duty-free policy on Ukrainian products should be turned into solidarity corridors to allow Hungary and other neighbouring countries to protect their agricultural sector.

The Ukrainian minister of agriculture, Mykola Solskyi, had a call with its Hungarian counterpart, Istvan Nagy, to discuss the current situation on Sunday 16 April. Solskyi pointed out that unilateral decisions cannot be accepted and that further negotiations are necessary. Despite the ban, Nagy claimed that “the transit of Ukrainian agricultural products would continue”, as the Ukrainian ministry of agriculture highlighted in a statement.

Slovakia and Ukraine

The Slovakian Ministry of Agriculture announced a ban on the import of certain food products from Ukraine on Monday 17 April, claiming that the current situation has “destabilsed the domestic agricultural market”.  Despite not including grain, the list of banned products contains 30 items, from cereals to alcohol. The ministry reserved the right to update the list in case the market situation changes and stated that the ban, unlike the Polish and Hungarian one, applies for an indefinite period. Transit goods can still travel via Slovakia but the container will be sealed, with inspection carried out by the Slovak ministry of internal affairs.

RailFreight Summit Poland

Rail freight between Poland and Ukraine will be among the topics discussed at the RailFreight Summit Poland, held in Warsaw this week. On Wednesday 19 April, a break out session will take place in which Polish and Ukrainian rail freight companies and customers discuss the latest developments.

You can still buy tickets for this event, also for online participation. See the programme here or register directly here.

Also read:

• What if both sides are right? The case of duties on Ukrainian exports
• Transporting Ukrainian grain via rail is getting cheaper
• Ermewa delivers 200 new wagons for grain export from Ukraine