Transition of Ukraine's agribusiness to European standards opens premium market for exporters, says Oleksii Sobolev
Free exports for Ukraine prove a matter of economic stability for the state and global food security. Therefore, the Ministry of Economy, Environment and Agriculture focuses on expanding trade opportunities by bringing the Ukrainian agribusiness closer to EU requirements and increasing quotas. This was stated by Minister of Economy, Environment and Agriculture of Ukraine, Oleksii Sobolev, in an interview with Latifundist.com.
"The agricultural sector provides up to 60% of foreign exchange earnings. Any delays or restrictions quickly affect both the Ukrainian economy and foreign markets. That is why the Ministry's focus is twofold. Increasing quotas provides broader access to the market, and the transition to European standards makes it possible to systematically use this access. Additionally, this course is enshrined in the amendments to the Association Agreement adopted in October," the Minister noted.
Oleksii Sobolev emphasizes that the country's agricultural policy prioritizes increased processing. In 2024, Ukrainian exports grew to USD 41-42 billion, but more than two-thirds of this volume is provided by agricultural raw materials, ore and steel, while the processing industry accounts for only about 10% of GDP instead of about 20%, which is typical for developed economies.
According to the Minister, both restrictions and incentives contribute to moving away from the raw materials model. Examples include export duties on sunflower seeds, which have led to the development of a powerful oil extraction industry, and a moratorium on the export of round timber, which has stimulated investment in wood processing and furniture manufacturing.
"We will continue to support processing and logistics through guarantees, preferential loans, interest compensation, and donor programmes. At the same time, we will simplify conditions for investors: faster permits, improved infrastructure, simplified land use reclassification, and insurance against military risks," added Oleksii Sobolev.
In addition, agricultural producers can take advantage of a number of programmes under the Made in Ukraine policy. These include a programme to compensate 25% of the cost of Ukrainian agricultural machinery, which has led to a sharp increase in domestic agricultural machinery manufacturing, and grants for processing enterprises, which provide up to UAH 8 million for new equipment. There is also support for projects with significant investments, where there are already two large agricultural processing projects, industrial parks, accessible '5-7-9' loans, products from the Export Credit Agency, and a number of others.