Ukraine’s agricultural sector faces worst situation since full-scale war began — Vysotskyi

The situation in Ukraine’s agricultural sector is now the most challenging since the beginning of Russia’s full-scale war, Agriculture Minister Taras Vysotskyi told journalists in Brussels, LIGA.net reports.

“As of today, the situation in Ukraine’s agricultural sector is the most difficult since the beginning of the full-scale invasion. [...] In September, we can see from the export figures that there is a possibility of reaching 46% of the required capacity, while the maximum capacity of alternative routes is 50%. There is a risk that around 30 million tons of agricultural products worth approximately $10 billion will not be exported,” Vysotskyi said.

According to him, the agricultural sector will not feel the full consequences of the current situation immediately, as the production cycle in agriculture lasts about a year.

If export problems persist, Ukraine’s sown area could shrink by 35–40% as early as next spring.

“And then these will already be irreversible, significant losses for Ukrainian agriculture and, consequently, for the Ukrainian economy. This could amount to up to 5% of GDP,” the minister said.

Vysotskyi also warned that under such a scenario, losses in state budget revenues could reach UAH 90 billion per year.