Poland, Ukraine and Lithuania reach historic deal on grain exports

KyivEdited By: C KrishnasaiUpdated: Oct 03, 2023, 10:39 PM IST
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A combine harvests wheat near Kramatorsk, in Donetsk region on August 4, 2023, amid the Russian invasion of Ukraine. Photograph:(AFP)

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The grain inspections that were earlier carried out at the Ukraine-Poland border would now be done at a Lithuanian port on the Baltic Sea

Poland, Ukraine and Lithuania on Wednesday (Oct 3) signed a deal that would allow speedier exports of Ukrainian grains to the other countries beyond Europe.

According to the deal, the grain inspections that were earlier carried out at the Ukraine-Poland border would now be done at a Lithuanian port on the Baltic Sea.

"From tomorrow, grains that transit (to world markets) via Lithuania will undergo checks at a Lithuanian port and not at the Poland-Ukraine border," Polish Agriculture Minister Robert Telus told journalists.

After undergoing inspections for pests and plant diseases, which will take place from Wednesday, the grain would be exported from the Lithuanian port of Klaipeda by sea around the world.

The move seeks to facilitate the transit of Ukrainian exports through Polish territory, a statement from the Ukrainian farm ministry said, without providing further details.

Deal to ease Poland-Ukraine tensions

The agreement over Ukrainian grain exports is expected to help defuse a spat between Ukraine and Poland over the imposition of a temporary embargo on the produce.

The present tensions erupted after Russia's invasion prevented Ukraine from using its traditional Black Sea routes to export grain to world markets, because of which the crops were sent by land through the European Union.

However, because of logistical issues, grain began piling up in EU states neighbouring Ukraine and driving down local prices.

Brussels allowed several countries to impose a temporary embargo on Ukrainian grains.

But when it ended those restrictions in mid-September, Poland, Hungary and Slovakia extended the ban, causing a diplomatic spat between Kyiv and its allies.

In response, Ukraine complained to the World Trade Organization as the spat worsened.

The EU countries said they would keep allowing those products to move through their borders to parts of the world where people are going hungry.

Ukraine major exporter of wheat 

Ukraine is a major global supplier of wheat, barley, corn and vegetable oil and has struggled since Russia’s invasion to get its food products to parts of the world in need.

Kyiv accounts for 10 per cent of the world wheat market, 15 per cent of the corn market, and 13 per cent of the barley market. With more than 50 per cent of world trade, it is also the main player in the sunflower oil market, according to the European Commission.

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C Krishnasai

C Krishnasai

Krishnasai is a member of the WION Web Team. He is a political news junky and an avid follower of cricket.