The EU may punish Poland for banning grain imports from Ukraine - RMF FM

Some European Union countries are ready to impose penalties on Poland if Warsaw upholds the ban on Ukrainian grain exports. In August, no decision on the extension of the EU ban on imports of Ukrainian wheat, corn, rapeseed, and sunflower will be taken after September 15. The European Commission will take this decision only in September.

The Polish authorities have announced that if the EU does not extend the ban on Ukrainian grain, they will introduce unilateral restrictions. Such a decision by Warsaw would be tantamount to a violation of EU law.

For this, Poland may face financial penalties, but their application is associated with a lengthy procedure. Germany, for example, may decide to take such a step, but not only.

Most countries oppose extending the grain import ban from Ukraine to only four countries. Even 20 countries may oppose such an expansion.

Sources of the publication said that Romania does not want to act against the European Commission. The same applies to the other four countries. If only Poland and Hungary introduced unilateral restrictions, they would not count on leniency from either the EU or other EU countries. Therefore, a compromise remains the best solution.

What is known about the suspension of imports of Ukrainian grain

Following a full-scale Russian invasion, Ukrainian Black Sea ports were blocked, forcing Ukraine, one of the world's largest grain exporters, to seek alternative supply routes, including via Poland and Romania.

In 2022, Poland and Romania jointly promoted grain exports from Ukraine. The additional supply of grain in their markets put pressure on farmers as it affected grain prices and storage capacity. Local protests against the governments took place in two countries.

According to the estimates of the European Commission, farmers from Poland, Romania, Hungary, Bulgaria, and Slovakia lost EUR 417 million due to the influx of cheaper Ukrainian grain to their markets.

On May 2, the European Commission temporarily restricted the sale of wheat, corn, rapeseed, and sunflower seeds of Ukrainian origin in Bulgaria, Hungary, Poland, Romania, and Slovakia.

On June 5, the European Commission extended the restrictions on imports of Ukrainian agricultural products until September 15, 2023. Restrictions apply to the import of wheat, corn, rapeseed, and sunflower seeds from Ukraine. At the same time, the scope of application of these measures to these products is reduced from 17 to 6 tariff lines.

On July 19, Hungarian Agriculture Minister Istvan Nagy told Reuters that Bulgaria, Hungary, Poland, Romania, and Slovakia will ask the European Union to extend the Ukrainian grain import ban, which expires on September 15, at least until the end of the year.