Ukraine has appealed to the European Commission for 220 million euros to support farmers due to the blockade of ports.

The EU may provide Ukraine with €220 million to support the agricultural sector

Ukraine is asking the European Commission to allocate €220 million to compensate interest on loans for small and medium-sized agricultural producers to help them overcome the consequences of the blockade of sea exports due to Russian attacks on ports in the Odesa region.

The Ministry of Agrarian Policy and Food noted that these funds are extremely important for farmers who suffered due to the blockade of sea routes. The proposal is aimed at supporting the liquidity of agricultural enterprises that have lost the ability to sell their products. The attracted resources will help finance the basic costs of farmers, such as wages, land rent, storage and processing of the harvest, as well as preparation for the new sowing campaign.

European funds are planned to be channeled through the state program “Affordable Loans 5-7-9%”, which will provide a loan portfolio of up to €4 billion with a final interest rate of no more than 10% per annum. The support will be available to those agricultural producers who meet the program’s requirements and the criteria of environmental and social responsibility (ESG).

According to the Ministry’s forecasts, Ukraine could export about 64.4 million tons of agricultural products in the 2026/27 marketing year. However, restrictions in seaports may significantly reduce these volumes to 29.6 million tons. There is also a risk that storage capacities may be fully filled by October.

The blockade of sea exports is part of a broader problem that has worsened due to ongoing Russian attacks, which have already resulted in the destruction of thousands of Ukrainian port infrastructure facilities. This significantly limits Ukraine’s ability to meet its export obligations, which could negatively impact the global agricultural market.