In an interview with Reuters, a senior Ukrainian official suggested that Ukraine may be willing to give up the European Union’s agrarian subsidies in exchange for a relaxation of the bloc’s Green Deal requirements during upcoming accession talks. The talks are set to begin next month, and will focus on aligning Ukraine’s legislation with EU standards.
Ukraine’s vast agricultural sector, which was previously the world’s fourth-largest supplier of grain, plays a key role in its economy. The country has been invited to join the EU and stands to receive 96.5 billion euros in subsidies over seven years if it becomes a member. However, the EU’s Green Deal regulations could potentially make business more difficult for Ukrainian farmers.
The senior official expressed a desire for less trade and environmental restrictions for Ukrainian farmers, and indicated a willingness to trade subsidies for this outcome. The official spoke on the condition of anonymity, and there has been no immediate comment from the European Commission on these statements.
During the interview, the official also emphasized the importance of protecting Ukraine’s competitiveness and avoiding bureaucratic obstacles that could hinder agricultural development. The agricultural sector accounted for half of Ukraine’s exports before the invasion, and is crucial for the country’s economy.
There is concern that if Ukraine were to join the EU, its farming exports would not be subject to tariffs or quotas, potentially impacting other member states. Additionally, protests have erupted in various European countries in response to the EU’s Green Deal regulations and subsidies extended to Ukraine.
Many European farmers are demanding easier environmental regulations, new subsidies, and lower taxes to protect themselves from competitors like Ukraine. On the other hand, some Ukrainian officials are wary of becoming too dependent on agricultural subsidies, which they believe could stifle innovation and diversity in the farming sector.
While some Ukrainian farmers anticipate increased subsidies and improved harvests if Ukraine joins the EU, others worry that excessive subsidies could lead to a lack of flexibility and dynamism in the agricultural sector. The outcome of the accession talks and the impact on Ukrainian farmers and EU member states remain to be seen.
($1 = 0.9283 euros)
(Reporting by Pavel Polityuk; Editing by Tom Balmforth and Sharon Singleton)
