Ukraine’s agricultural sector may run out of funds as early as spring 2027: what is known
Фото: facebook European Commission
Ukrainian farmers have enough financial resources until around the New Year, but the industry may face an acute shortage of funds in the spring. The reason is the restriction on exports through the Black Sea.
This was reported by Bloomberg, citing a statement by the Minister of Agrarian Policy and Food of Ukraine, Taras Vysotsky.
According to him, Ukraine sees no signs of a possible truce that would allow for the restoration of full-fledged agricultural exports across the Black Sea in the coming months. Vysotsky noted that Russia has rejected all proposals from partners.
“Unfortunately, it is difficult to imagine any possible solutions in the coming months. We must prepare for the situation to remain as critical as it is now,” the minister said.
Currently, Ukraine can export about 45% of its required agricultural products via alternative routes. Due to logistical restrictions abroad, about 30 million tons of products may remain unsold during the current marketing year.
At the same time, the European Commission rejected Ukraine’s request for 220 million euros to support the agricultural sector and ensure its liquidity. Instead, the industry is to receive a concessional loan from the World Bank for 250 million dollars.
“This will more or less allow us to hold out until the New Year. But now we need to think about what will happen in the spring after the New Year, because the situation remains critical,” Vysotsky emphasized.
In addition, Ukraine has asked the European Union to increase duty-free quotas for the supply of bioethanol and sugar by 2027. In the event of a positive decision, Kyiv plans to request an expansion of quotas for other types of agricultural products.
It was previously reported that Italy is preparing a new TERRA Ukraine program to support Ukrainian agribusiness. The initiative provides for financing Ukrainian farmers, and the total budget of the program may reach 105 million euros.
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