EU Implements Emergency Support Measures for Cereal and Oilseed Sectors in Bulgaria, Poland, and Romania

Farmers in Bulgaria, Poland, and Romania have been on the front lines in the Russian war on Ukraine, suffering heavy losses due to the impact of the war on shipping operations in Ukrainian Black Sea Ports. To avoid threats to global food security and support Ukrainian farmers, the European Union has taken concrete measures to facilitate Ukraine's agricultural exports, such as the "EU-Ukraine Solidarity Lanes." However, changes in logistical routes have resulted in more expensive transport costs for Ukrainian cereals and oilseeds to reach their traditional markets, leading to a shift in exports to the Union market.

The increased imports of cereals and oilseeds from Ukraine to the Member States of the Union close to Ukraine impact local farmers. In certain regions of the Union, the additional imports cause oversupply, depress local prices, or saturate logistics chains. Farmers in Bulgaria, Poland, and Romania are considered to be the most affected, especially the ones closest to a border or transit hub. The drop in local cereal and oilseed prices affects the economic viability of those farmers and may impact their planting decisions. This situation is likely to cause a rapid deterioration of production in the concerned areas, as well as difficulties in the implementation of "EU-Ukraine Solidarity Lanes."

To address this specific problem within the meaning of article 221 of the regulation on the common organisation of the markets in agricultural products that stipulates the adoption of emergency measures, the European Commission has adopted a regulation providing for an emergency support measure for the cereal and oilseed sectors in Bulgaria, Poland, and Romania. This regulation establishes a financial grant to support farmers affected by the increased imports of cereals and oilseeds from Ukraine for a period strictly necessary.

The Union aid of a total amount of EUR 56,300,000 will be made available to Bulgaria (EUR 16,750,000), Poland (EUR 29,500,000), and Romania (EUR 10,050,000) to provide exceptional support to farmers producing cereals and oilseeds. Bulgaria, Poland, and Romania will distribute the aid through the most effective channels on the basis of objective and non-discriminatory criteria that take account the economic losses borne by the affected farmers and ensure that the resulting payments do not cause any market or competition distortion. The support for this emergency measure should be paid by 30 September 2023.

Bulgaria, Poland, and Romania may grant additional national aid for the measures taken up to a maximum of 100% of the corresponding amount set out in the regulation, on the basis of objective and non-discriminatory criteria, provided that the resulting payments do not cause any market or competition distortion. They shall notify the Commission of the measures taken and the actions taken to avoid distortion of competition, as well as the assessment of the effectiveness of the measure.

This regulation provides much-needed support to farmers in Bulgaria, Poland, and Romania who have suffered significant economic losses due to the impact of the Russian war on shipping operations in Ukrainian Black Sea Ports. This emergency support measure is necessary to avoid a rapid deterioration of the production of cereals and oilseeds and ensure the economic viability of farmers in the affected regions. The European Union has taken concrete measures to support Ukrainian farmers, and this regulation demonstrates its commitment to supporting farmers in its Member States as well.