KYIV, UKRAINE — The Ukrainian Grain Association (UGA) is proposing an increase in grain exports through the so-called “Solidarity Lanes” from Ukraine to European ports with subsequent shipment to third countries.
It proposes increasing exports by 1 million to 1.5 million tonnes per month by compensating part of the costs of European carriers and ports that transit Ukrainian grain.
This will lead to a significant reduction in the cost of grain transportation and will enable Ukrainian farmers to profitably export grain surplus to countries that need Ukrainian grain and stabilize global food security, the UGA said.
Russia on July 17 left the Black Sea Grain Initiative, which had allowed for the safe passage of 33 million tonnes of grains and other foodstuffs from Ukrainian ports.
The grain initiative was brokered in July 2022 by Turkey and the United Nations, after Russia’s invasion in February 2022 had stopped exports, causing price inflation and food insecurity.
Since leaving the grain initiative, Russia has focused its attacks on Ukrainian ports and grain terminals as well as assets on the Danube River, which was providing alternate routes for grain.
The UGA said capacity can be increased on the Solidarity Lanes by exporting grain through the ports of the Baltic States (Klaipeda and others), Germany (Rostock, Hamburg), the Netherlands (Rotterdam), Croatia (Rijeka), Italy (Trieste) and Slovenia (Koper).
These routes are not used much due to the complexity and cost of logistics compared to other routes, the UGA said. The price difference is approximately 30-40 euros per tonne.
Therefore, the UGA has asked the EU to introduce “green corridors” for Ukrainian agricultural products to the seaports of the Baltic countries, Germany, the Netherlands, Croatia, Italy and Slovenia,
This would include:
- The transfer of sanitary, phytosanitary and veterinary control from checkpoints on the border with Ukraine to the territory of the country of destination, which will ensure a significant increase in exports;
- Introduction of subsidies from the European Commission to compensate European carriers for additional logistics costs for transit transportation and partial compensation for European ports — the so-called port costs for Ukrainian grain.
The UGA said the expected export volume for Ukraine of grain and oilseeds in the 2023-24 marketing year is about 45 million tonnes. Additionally, Ukraine also exports about 9 million to 10 million tonnes of oil and meal.
