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Drought in Ukraine threatens the next grain harvest.

The EBRD provides a guarantee to OTP Leasing to finance Ukrainian small and medium-sized enterprises.

The new European Commissioner for Agriculture names the Ukrainian agricultural sector the elephant in the room regarding its impact on EU agriculture.

Drought in the Black Sea region, particularly in Ukraine, has slowed the sowing of winter crops, which make up a significant part of Ukraine’s grain production. According to the industry experts, this further complicates the problems farmers are facing during the war.

While wheat prices are now well below their peak after the Russian invasion of Ukraine in 2022, they have risen in recent weeks in part due to supply problems from the Black Sea.

Ukraine’s wheat production is about 33% below pre-war levels after it lost land to the Russian invasion. Due to the extremely hot weather, reduced rapeseed acreage is forecast in Ukraine, but wheat and barley will be less affected.

Moreover, the Ukrainian regions that are now occupied by the Russian Federation were large producers of agricultural products. Farmers in other parts of Ukraine have to work in fields contaminated by mines and munitions and navigate labor shortages arising from mobilization.

 

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