Commission creates solidarity bands to help Ukraine to export agricultural commodities

13.05.2022

EU news

The Commission came up yesterday with a package of measures that will help Ukraine to export agricultural products, as part of THE EU solidarity response to Ukraine. Following the invasion of Russia in Ukraine and the Ukrainian port blockade, Ukrainian cereals and other agricultural commodities can no longer be destined for destination. The situation is a threat to food security in the world and alternative logistical routes are urgently needed, using all relevant modes of transport.

In today's communication, the Commission sets out an action plan to establish solidarity bands to ensure that Ukraine can export grain and to import the necessary goods from humanitarian aid to animal feed and fertilizers.

Transport Commissioner Adina Velvet

In less than three months using EU infrastructure, 20 million tonnes of grain should be exported from Ukraine. This is a huge problem, so it is important to coordinate and optimise logistics chains, introduce new routes and avoid congestion as far as possible. Our communication deals not only with emergency solutions but also medium - and long-term measures to better connect and integrate Ukrainian infrastructure with EU infrastructure. In both short-term and long-term solutions, we will work with the Ukrainian authorities and cooperate closely, particularly with the neighbouring Member States that did not make efforts to assist in the crisis.

Urgent action to prevent transport congestion

Despite the immediate efforts OF THE EU and the Member States to facilitate border crossing between Ukraine and THE EU, thousands of wagons and trucks are waiting for customs clearance on the Ukrainian side. Currently, the average waiting time for wagons is 16 days, but at some limits it is up to 30 days. Further exports of ready-to-eat grain are still held and held in Ukrainian tanks. One of the problems is the difference in track gauge: Ukrainian wagons are not compatible with most OF THE EU rail network, so most of the goods must be shipped in trucks or wagons corresponding TO THE EU standard width. This process is time-consuming and there are little transhipment facilities at the borders.

In order to remove these obstacles and establish solidarity bands, the Commission will work with Member States and stakeholders in the short term on such priority actions.

  • Additional freight rolling stock, ships and trucks. The Commission calls ON EU market participants to make additional vehicles available as a matter of urgency. In order to harmonise demand and supply and to establish appropriate contacts, the Commission will establish a networking platform and invite Member States to designate specific contact points for solidarity bands (one-stop shop).
  • Capacity of transport networks and transhipment terminals. Priority must be given to Ukrainian agricultural export shipments and the infrastructure managers must make available for this export a railway slot. The Commission also calls on the market participants to urgently move mobile grain loaders to the relevant border terminals in order to accelerate the transhipment. Road transport agreement Ukraine will also prevent congestion. In order to encourage EU carriers to allow vehicles to enter Ukraine, the Commission will also explore options for additional financial guarantees.
  • Customs operations and other checks. The Commission encourages national authorities to apply maximum flexibility and to provide sufficient staff to accelerate procedures at border crossing points.
  • Storage of goods in THE EU. The Commission will assess THE EU's available storage capacity and coordinate activities with Member States to help ensure greater capacity for temporary storage of Ukrainian exports.

Improving eu-ukraine connectivity in the medium term

In the medium and long term, the Commission will also work on increasing the infrastructure capacity of new export corridors and new establishment of infrastructure connections within the framework of Ukraine's reconstruction. The next call for proposals for the Connecting Europe Facility (CEF) will provide an opportunity to support projects that improve transport links with Ukraine, including rail links and rail terminals. In view of the above, the Commission today adopted a decision to sign a high-level agreement with Ukraine updating the Ten-T maps as part of the Commission's policy on extending TEN-T to neighbouring countries.

Context

In normal circumstances, 75 % of Ukrainian cereal production is exported, resulting in approximately 20 % of the national annual export revenue. Before the war, the Black Sea ports of Ukraine exported 90 % of its cereals and oil crops. Around one third of exports are destined for Europe, China and Africa respectively.

More information

Commission communication: Action Plan on Eu-Ukraine solidarity bands to facilitate exports of Ukrainian agricultural products and bilateral trade with THE EU

Commission Decision on the signing of a high-level agreement between the European Union and Ukraine on the indicative maps of the trans-European transport network in Ukraine

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