Ukraine is asking the European Commission for 220 million euros to support farmers
On August 7, the Ministry of Agrarian Policy and Food of Ukraine appealed to the European Commission to provide 220 million euros in non-repayable aid. The funds are intended to cover interest payments on loans for small and medium-sized agricultural producers who have faced difficulties due to restrictions on the operation of Ukrainian ports.
It is proposed that the funds be channeled through the state program “Affordable Loans 5-7-9%” to ensure liquidity for businesses that, due to Russian attacks on the ports of Greater Odesa, have lost the ability to export their products unimpeded and require funding to continue their operations and carry out the fall planting campaign.
“Because Russia has blocked maritime exports, thousands of Ukrainian farmers are unable to sell the produce they have already grown and obtain funds to continue their work. That is why we have appealed to the European Commission with a proposal to support Ukrainian producers by subsidizing interest on loans,” emphasized Minister of Agrarian Policy and Food Taras Vysotsky.
According to him, this will allow farmers to maintain liquidity, carry out the fall planting campaign, and avoid being forced to sell their produce at below-market prices.
The prolonged blockade of ports is creating a massive financial crisis for the agricultural sector. In the 2026/2027 marketing year, Ukraine is expected to export approximately 64.4 million metric tons of agricultural products. However, due to the prolonged restrictions on seaport operations, exports could drop by nearly half—to about 29.6 million metric tons.
Unable to sell their produce, farmers are forced to build up inventories without receiving any proceeds from sales.
According to estimates by the Ministry of Agrarian Policy, the sector will generate approximately 6.4 billion euros in cash receipts during the marketing year, with operating expenses totaling 11.2 billion euros.
By November, unsold inventory will amount to nearly 10.8 billion euros, and the agricultural sector’s minimum working capital requirement will be approximately 4 billion euros.
Therefore, Ukraine is proposing that the EU provide 220 million euros in non-repayable support to offset interest on loans under the state program “Affordable Loans 5-7-9%.” This contribution will enable the creation of a loan portfolio of up to 4 billion euros to finance farmers’ working capital, with a final interest rate for borrowers of no more than 10% per annum.
It will also reduce the burden on the border infrastructure of EU countries and preserve Ukraine’s export potential until seaports resume operations.
Source: Ministry of Agriculture
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