MOSCOW (Pakistan Point News / Sputnik - 23rd May, 2023) The European Commission said on Tuesday it had approved the allocation of around 1 billion Euros ($1.1 billion) under the Polish government's plan to support domestic agriculture producers facing numerous problems caused by the influx of cheap grain from Ukraine.
"The European Commission has approved an approximately ��1 billion (PLN (Polish zlotys) 4.7 billion) Polish scheme to support the liquidity of agricultural producers," the European Commission said in a statement.
The aid will consist of direct grants designed to reduce liquidity shortages caused by the increase in cost of mineral fertilizers and the lack of stability on the agricultural market, the statement read.
The measures are part of the Temporary Crisis and Transition Framework, adopted by the European Commission in March 2023 and designed to accelerate the green transition and reduce fuel dependencies. Under this framework, the amount of assistance per beneficiary will not exceed 250,000 euros and will be allocated no later than December 31, 2023, the statement read.
In April, Poland, Hungary, Slovakia and Bulgaria banned imports of Ukrainian agricultural products, citing the need to protect domestic farmers from the uncontrolled influx of cheap grain. The prime ministers of the four countries and Romania also urged the European Commission to introduce measures to counteract the negative effects of the increased imports of Ukrainian grain.
Later that month, the European Commission presented proposals to resolve the situation, in response to which the countries agreed to lift national restrictions on Ukrainian imports. The proposals provided for the introduction of a two-month ban on the import of Ukrainian wheat, corn, sunflower and rapeseed into the territory of the five Eastern European countries and included a package of financial aid worth 100 million euros for their domestic farmers.
Ukraine was granted a temporary duty-free trade arrangement with the European Union last June. In March 2022, the EU additionally launched green corridors to facilitate the transit of Ukrainian grain to the world market amid Russia's special military operation. However, the cheap grain from Ukraine ended up flooding EU markets instead, prompting outrage among local farmers.
