Ukraine seeks €220M in EU aid for farmers hit by port blockade
Ukraine has asked the European Commission for 220 million euros in nonrepayable aid to subsidize loan interest for small and medium-sized farmers affected by the blockade of maritime exports, the Agriculture Ministry said on Aug. 7.
On August 7, Ukraine's Agriculture Ministry requested 220 million euros in nonrepayable European Union aid to assist farmers impacted by the maritime export blockade, attributed to Russia's attacks on Ukrainian ports. Agriculture Minister Taras Vysotskyi emphasized that thousands of Ukrainian farmers are unable to sell their crops and secure funds for operations due to the maritime export limitations.
The ministry aims to supply liquidity to affected businesses through the Affordable Loans 5-7-9% program, which would create a loan portfolio capable of financing up to 4 billion euros in working capital for farmers, with a maximum borrowing interest rate of 10% annually. The EU support would be available to small and medium-sized agricultural producers meeting the government program's requirements and ESG criteria.
Ukraine's export of agricultural products for the 2026-27 marketing year is projected to decrease by over half, from 64.4 million metric tons to approximately 29.6 million metric tons, owing to the seaport restrictions. Effective storage capacity could be fully utilized by October, while around 9 million metric tons of grain, oilseeds, and meal may lack adequate storage capacity by November.
Russia's attacks on civilian vessels in Ukrainian ports since the 2022 full-scale invasion have further exacerbated the situation. The UN has warned of potential food security risks due to Russian actions on Black Sea ports, and the Southern Mining and Processing Plant in Kryvyi Rih has partially suspended mining operations due to the attacks on civilian commercial vessels heading to Ukraine's Black Sea ports.
This has led to a threefold increase in domestic wheat prices, reaching 3,000 hryvnias ($72) per metric ton for purchases directly from farmers. Ukrainian farmers have demanded urgent anti-crisis measures from the government and prime minister, citing the halt in vessel traffic, port damages, export restrictions, and high fuel costs as putting them at risk of widespread bankruptcies.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written; read the original for the full account.
