Despite the conflict, trade in grain continues to be carried out on a market basis and, as always, the buyer looks for and finds a cheaper product
Warsaw, Poland 29 July 2023, 02:40 108817 read 14 comments
It has already become more than clear that Warsaw’s solidarity with Kyiv has corresponding limits. A financial problem arose between the two neighboring countries due to the uncontrolled import of Ukrainian grain into the countries of the European Union. The Poles, who do not want foreign products to flood the country’s domestic market, decided on an ultimatum.
Warsaw says it will act independently if Brussels does not extend restrictions on imports of Ukrainian agricultural products, the European edition of the publication notes Politico.
“Focus” presents a translation of the material without editorial intervention and with the clarification that it reflects only the point of view of its author – Bartosz Brzezinski.
Warsaw’s solidarity with Kyiv knows no bounds. Well, or almost none. It just all comes down to money, hands down “Focus”.
It’s been more than a year since the EU created overland “solidarity corridors” to help export millions of tonnes of agricultural products from Ukraine. And now Warsaw is threatening to close its borders for a second time if Brussels doesn’t impose temporary restrictions and provide money. so that the same Ukrainian production does not remain on Polish territory.
Such unilateral action would violate EU-wide trade rules, but Warsaw says they are necessary because Ukrainian produce, whose exports to the traditional Black Sea routes are again blocked by Russia, are hurting Polish farmers.
“The interests of our farmers are of primary importance to us,” Polish Agriculture Minister Robert Tellus assured after a meeting with EU representatives. “Our decisions are not directed against anyone; they are taken primarily in the interest of our farmers.”
When Moscow launched military action against Ukraine last year and imposed a blockade on Black Sea ports, eastern European Union states such as Poland, Romania and, to a lesser extent, Bulgaria, Hungary and Slovakia faced an unprecedented “flood” of Ukrainian grain.
The reasons were surprisingly simple. Despite the conflict, trade in grain continues to be carried out on a market basis and, as always, the buyer looks for and finds a cheaper product. Ukrainian grain is of high quality and not expensive, but only if it is transported by sea or land over short distances.
As for the grain sent to Poland, it is established in the eastern regions that border Ukraine.
Telus blamed international traders for transporting Ukrainian grain across the border, saying they sold the goods to local intermediaries such as flour mills and feed manufacturers. Thus, Polish farmers were faced with the problem of reducing their production.
A matter of solidarity
But Poland and the four other EU countries have few allies willing to back them up.
“This temporary ban is absolutely necessary, as these countries will not withstand the pressure,” warned EU Commissioner for Agriculture Janusz Wojciechowski – also a Pole.
Others see the situation differently.
Senior Ukrainian officials criticized the restrictions, with the country’s President Volodymyr Zelensky stressing that extending the ban was “absolutely unacceptable and not European”.
“Our position is clear: blocking Ukrainian land exports after September 15, when the relevant restrictions expire, is unacceptable in any form,” Zelensky wrote on his Telegram channel on Monday evening.
Zelensky’s desperation comes as Russian President Vladimir Putin ended the so-called grain deal, reimposed a naval blockade and launched a series of airstrikes on Ukrainian ports. Under the UN-brokered deal last summer, Kiev exported 33 million metric tons of grain to world markets. Now that the country is harvesting the new crop, this route is closed.
Many EU countries, including France, Germany and Spain, support Ukraine’s position. While acknowledging that its grain has worsened the situation for some European farmers, they say the trade restrictions will undermine the integrity of the EU’s internal market and the bloc’s efforts to help Kiev.
“This is not a wish-fulfillment program where you choose what you want, take money from Brussels and close the border at the same time,” noted German Agriculture Minister Jem Özdemir. He added that only Russia, which seeks to push Ukraine out of world grain market, benefits from Poland’s actions.
The current restrictions expire on September 15 – a month before Poles go to the polls to choose a new government.
Farmers are a key segment of voters for the right-wing government in Warsaw, which has vowed not to allow Ukrainian grain to enter Polish territory. “We absolutely will not allow this,” Telus emphasized.
It’s all about the money
Brussels did not take a stand on the Polish threats and instead decided to organize closed-door talks between EU member states and Kiev.
While the European Commission hesitated, Lithuania offered to transport the Ukrainian grain to its port city of Klaipeda, as well as to four others in Estonia and Latvia.
But with every kilometer, transport costs are increasing, which is why Ukrainian agricultural products are becoming less competitive on the world market. In addition, there are unavoidable logistical costs associated with expanding rail capacity and increasing storage capacity. And no one – least of all Warsaw – is willing to pay bills that could reach hundreds of millions of euros.
Telus said that if Brussels or some other EU countries wanted to finance the transport of grain through Poland, then their offer would be gladly accepted.
“The European Commission always has funds for various expenses, so it can find funds and finance the transportation of grain. Poland actively supports Ukraine and helps it. I think no one doubts that. But such assistance should be provided evenly by all countries, not only from Poland and other border countries’.
The Minister of Agriculture of Warsaw will have to find an answer to a very important question: who actually imports Ukrainian grain to Poland. High-ranking government officials in Warsaw are said to be encouraging companies to take advantage of the low prices and ship products to Poland.
Telus, which took office in April, says it will make the list of those businesses public. But so far he hasn’t. In this regard, there were speculations that such a publication would put the ruling camp in an awkward position ahead of the elections.
Jan Maria Jakowski, a member of the Polish Senate, asked Telus to follow through on that promise last week. “The publication of the list is very important for understanding the situation. If everything corresponds to what is said in the comments that have appeared, then we are dealing with one of the biggest scandals in Poland in recent years.”
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2023-07-29 02:30:24
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