00:00 The European Commission is faced with a dilemma concerning subsidies for Ukrainian cereal exports.
00:14 While Kiev is looking for ways to compensate for the loss of the Black Sea route,
00:19 the EU is unable to subsidize Ukrainian cereal exports,
00:23 while some EU members oppose it anyway.
00:26 Last year, Brussels had abolished tariffs and quotas on Ukrainian products
00:31 to support the country in its fight against Russia.
00:34 In July 2022, Russia had agreed to offer security guarantees
00:39 to commercial ships transporting Ukrainian cereals via the Black Sea.
00:42 However, the agreement collapsed earlier this month,
00:46 as Moscow did not obtain the promise of easing sanctions on its own food and fertile trade.
00:51 In a letter addressed last week to the head of the EU trade,
00:55 Valdis Dombrovsky, the Ukrainian government asked for financial help
00:59 to cover some of the transport costs via the Solidarity Ovois,
01:03 which ship Ukrainian products via the EU.
01:05 The compensation requested was estimated at between 30 and 40 dollars per ton,
01:09 and aimed to cover the difference between the cheaper route of the Black Sea and the alternatives.
01:14 However, some EU member states are opposed to this proposal,
01:19 citing the difference on the current partial ban on Ukrainian cereal exports to the bloc.
01:25 Five EU member states saw massive protests from farmers
01:29 after Ukrainian food products have flooded their markets and lowered prices.
01:33 In May, they put pressure on the Commission to approve the temporary restrictions
01:39 they had imposed at the national level,
01:40 and to pay compensations to concerned agricultural producers.
01:44 The restriction should expire in mid-September,
01:47 but the group intends to extend it until the end of the year.
01:50 This week, Ukrainian President Vladimir Zelensky
01:54 described this effort as "non-European" and urged Brussels not to give in.
01:58 This situation highlights the difficulties the EU is facing
02:03 to support Ukraine in its fight against Russia
02:05 while preserving the interests of its own members.
02:07 The abolition of tariffs and quotas on Ukrainian products last year
02:11 was a strong gesture by Brussels to help Kiev in this fight,
02:14 but the reluctance of some EU members to subsidize Ukrainian cereal exports
02:19 also highlights the limits of this commitment.
02:21 The European Commission must now find a balance
02:25 between the interests of farmers of certain EU member states and those of Ukraine,
02:28 while avoiding escalation of the conflict with EU members who oppose any financial aid.
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02:43 (air whooshing)
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