Following attacks on ports in the Odesa region, the EU has requested 220 million euros

<span><span><span><span><span><span>The Ministry of Agrarian Policy and Food of Ukraine has appealed to the European Commission to allocate 220 million euros in non-repayable aid to compensate for interest on loans taken out by small and medium-sized agricultural producers. The grant will be allocated to the “5-7-9%” program to support businesses that have lost their ability to export due to attacks on the ports of Greater Odessa.</span></span></span></span></span></span>

<span><span><span><span><span><span>This was reported by the Ministry of Agrarian Policy and Food of Ukraine.</span></span></span></span></span></span>

It is noted that agricultural enterprises currently need funding to continue their operations and carry out the fall planting campaign.

“Due to Russia’s blockade of maritime exports, thousands of Ukrainian farmers are unable to sell their already harvested produce and obtain funds to continue their operations. That is why we have appealed to the European Commission with a proposal to support Ukrainian producers by compensating for interest on loans. This will allow farmers to maintain liquidity, carry out the fall planting campaign, and avoid being forced to sell their produce at below-market prices,”emphasized Taras Vysotsky, Minister of Agrarian Policy and Food of Ukraine.

<span><span><span><span><span><span>The halt in maritime logistics is triggering a financial crisis in Ukraine’s agricultural sector, as forecasts indicate that only 29.6 million metric tons of grain will be shipped abroad instead of the planned 64.4 million metric tons. This nearly twofold drop will lead to an acute shortage of storage space: as early as this fall, more than 9 million metric tons of agricultural products will be left out in the open due to a lack of available storage capacity. The inability to sell the harvest deprives farmers of revenue, which will cause the agricultural sector to face a shortage of working capital.</span></span></span></span></span></span>Therefore, the sector needs assistance. 

Earlier, the mining company Ferrexpo temporarily suspended iron ore production atits Ukrainian facilities. This was due to intensified Russian attacks on ports in the Odesa region, which have significantly hampered exports by sea.

Юлія Калабайда