Ukraine’s losses due to the EU’s introduction of a new protective mechanism against its agricultural products, which will become effective June 6, will approximately amount to €315M.
The introduction of quotas for products such as poultry, eggs, sugar, oats, corn, cereals, and honey will lead to Ukraine’s loss. The EU will introduce tariff quotas if the import of these goods to the EU exceeds the average volume of supplies imported from the second half of 2021 and through 2023.
Europe will also strengthen control over the import of Ukrainian wheat. The supply of Ukrainian sugar, poultry, and eggs to European markets may stop completely if it becomes unprofitable.
These projected losses will not be suffered by agricultural companies, but account for the lost foreign exchange gain for Ukraine’s economy.
Due to the limitation of supplies to the EU markets, Ukrainian producers will have to look for other sales markets, which significantly increases the cost of logistics.