The EU does not yet have the funds for the land transit of grain from Ukraine.
The European Commission has no money in the budget for immediate use and no clear way to help finance the extra transport costs for Ukrainian grain exports that will accompany the end of the Black Sea deal, reported Reuters.
Ukraine, one of the world’s biggest grain exporters, will now have to rely almost entirely on expensive routes through the EU, and the cheapest alternative artery, the Danube River, may not be able to expand its volume as much as hoped after Russian attacks.
Ukraine’s agriculture ministry asked EU trade chief Valdis Dombrovskis for the EC to provide financial aid for the extra transport costs associated with using alternate EU routes known as Solidarity Lanes. Ukraine estimates the additional cost to be $30-$40 a ton.
This week, EU agriculture commissioner Janusz Wojciechowski said Russia could benefit by undercutting Ukraine unless the EU helps reduce these costs.