Ukraine seeks €220 mln in EU support for farmers hit by port disruptions

Ukraine's Ministry of Agrarian Policy and Food has asked the European Commission to provide €220 million in non-repayable funding to subsidise interest payments on loans for small and medium-sized farmers.

The funds would be channelled through the government's Affordable Loans 5-7-9% programme to help agricultural producers affected by Russian attacks on the deepwater ports. The support is intended to preserve liquidity, sustain operations and finance the autumn sowing campaign.

"Due to Russia's blockade of maritime exports, thousands of Ukrainian farmers cannot sell the crops they have already produced or obtain the funds needed to continue operating. That is why we have asked the European Commission to support Ukrainian producers by subsidising loan interest payments. This will help farmers maintain liquidity, carry out the autumn sowing campaign and avoid being forced to sell their produce at depressed prices," Agriculture Minister Taras Vysotskyi said.

The ministry estimates that prolonged restrictions on the operation of Ukraine's seaports could nearly halve agricultural exports in the 2026/27 marketing year, reducing shipments from an expected 64.4 million metric tons to around 29.6 million tons.

According to the ministry, effective grain storage capacity could be fully utilised as early as October, while by November more than 9 million tons of grain, oilseeds and meal may be left without sufficient storage. Wheat exports face the greatest risk, potentially falling from 17.6 million tons to 8.3 million tons.

The ministry also projects that the agricultural sector will generate around €6.4 billion in revenue during the marketing year against operating costs of €11.2 billion. By November, unsold agricultural inventories could reach nearly €10.8 billion, while the sector's minimum working capital requirement is estimated at €4 billion.

If approved, the EU contribution would support the creation of a loan portfolio of up to €4 billion, with the final interest rate for farmers capped at 10% per annum. The programme would be available to eligible small and medium-sized agricultural producers that meet its environmental, social and governance (ESG) criteria.