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Ukrainian grain ban triggers EU warning to Poland and Hungary

In this post:

  • The EU warns Poland and Hungary over unilateral bans on Ukrainian grain imports, stressing the need for coordinated action.
  • Both countries implemented the bans to protect local agricultural sectors, causing tensions with the European Commission.
  • The situation highlights ongoing conflicts between Poland, Hungary, and the EU over various issues and the importance of a united response.

The European Union has warned its member states Poland and Hungary that unilateral action on trade is unacceptable after both countries announced bans on grain and other food imports from Ukraine.

The move is designed to protect local agricultural sectors, but has raised concerns among European officials who stress the importance of coordinated action during challenging times.

Impact on local farmers and politics

Large quantities of Ukrainian grain, which is cheaper than EU-produced grain, have remained in Central European states following Russia’s invasion and the subsequent blockade of some Black Sea ports.

This has led to logistical bottlenecks, affecting prices and sales for local farmers. The situation has posed a political problem for Poland’s ruling nationalist Law and Justice (PiS) party, as it has angered its supporters in rural areas.

In response to Poland and Hungary’s decisions, a spokesperson for the European Commission stated, “In this context, it is important to underline that trade policy is of the Union’s exclusive competence and, therefore, unilateral actions are not acceptable.”

They added that it is crucial for all decisions to be coordinated and aligned within the Union. Polish government spokesman Piotr Muller told state-run news agency PAP that the government is in constant contact with the European Commission about the issue and that the ban is permissible due to a security clause.

Ongoing Conflicts with the EU and Additional Concerns

Both Poland and Hungary have had ongoing conflicts with Brussels over matters such as judicial independence, media freedoms, and LGBT rights, resulting in withheld funds due to rule of law concerns.

In reaction to Hungary’s decision, Ukraine’s farm minister Mykola Solsky spoke with his Hungarian counterpart Istvan Nagy, stressing that unilateral decisions were unacceptable.

Meanwhile, Bulgaria’s Agriculture Minister Yavor Gechev announced that the country is also considering a ban on Ukrainian grain imports, raising further concerns among European officials.

Poland’s ban, effective since Saturday, applies to the transit of these products through the country. Development and Technology Minister Waldemar Buda stated that talks would be held with Ukraine to create a system that ensures goods only pass through Poland and do not end up on the local market.

Polish and Ukrainian ministers are scheduled to meet on Monday in Poland to discuss the transit arrangement. Poland’s Agriculture Minister Robert Telus has defended the ban, saying it is necessary to “open the eyes of the EU to the fact that further decisions are needed that will allow products from Ukraine to go deep into Europe, and not stay in Poland.”

The ban is set to last until June 30, according to the finance ministry. The situation adds to the growing tension in the region and highlights the need for a coordinated response from the Union.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Ryan Salame
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