Ministry of Agrarian Policy and Food appeals to the European Commission for emergency aid to Ukrainian farmers due to port blockade

The Ministry of Agrarian Policy and Food of Ukraine has appealed to the European Commission with a request to consider allocating EUR 220 million in non-repayable support to compensate interest on loans for Ukrainian small and medium-sized agricultural producers.

The funds are proposed to be directed through the state program “Affordable Loans at 5-7-9%” to ensure liquidity for enterprises that, because of russian attacks on the ports of Greater Odesa, lost the ability to freely export products and now require financing to continue operations and carry out the autumn sowing campaign.

“Because of russia’s blockade of maritime exports, thousands of Ukrainian farmers cannot sell already harvested products and receive funds to continue working. That is why we appealed to the European Commission with a proposal to support Ukrainian producers by compensating loan interest. This will allow farmers to maintain liquidity, conduct the autumn sowing campaign, and avoid forced sales of products at undervalued prices,” emphasized Taras Vysotskyi, Minister of Agrarian Policy and Food of Ukraine.

The prolonged blockade of ports is creating a large-scale financial crisis for the agricultural sector. In the 2026/2027 marketing year, Ukraine is expected to export about 64.4 million tonnes of agricultural products. However, due to restrictions on seaports, exports may fall nearly by half — to around 29.6 million tonnes.

This means significant volumes of grain and oilseeds will remain inside the country. By October, storage facilities may be completely filled, and by November more than 9 million tonnes of grain, oilseeds, and meal could lack necessary storage capacity. The greatest risks concern wheat exports, which may drop from 17.6 million tonnes to 8.3 million tonnes.

Because farmers cannot sell their products, they are forced to accumulate stocks without receiving sales revenue. According to the Ministry’s estimates, during the marketing year the sector will receive about EUR 6.4 billion in cash inflows while operating costs will reach EUR 11.2 billion. By November, unsold stocks will amount to nearly EUR 10.8 billion, and the minimum need for working capital in the sector will be about EUR 4 billion.

Therefore, Ukraine proposes that the EU provide EUR 220 million in non-repayable support to compensate loan interest under the “Affordable Loans at 5-7-9%” program. This contribution would secure a loan portfolio of up to EUR 4 billion for financing farmers’ working capital, with a final interest rate for borrowers not exceeding 10% per annum.

The support would be available to small and medium-sized agricultural producers who meet the program’s requirements and ESG (environmental, social and governance) criteria. The funds would enable farmers to finance wages, land rent, storage and processing of harvests, and preparation for the next sowing campaign.

Additionally, this measure would reduce pressure on EU border infrastructure and preserve Ukraine’s export potential until maritime ports resume operations.