Ukraine, also known as „The Breadbasket of Europe“, is an important exporter of agricultural products. However the neighboring states as Poland, Hungary, Slovakia and Bulgaria demanded in the last weeks an import ban for grain from Ukraine to prevent a price decrease due to the oversupply of Ukrainian grain at the European market.
From last year Ukrainian agricultural products such as wheat can be delivered to the EU without customs taxes. Some of the neighboring states of Ukraine are however now afraid of the price decrease, since the supply at the European market is already bigger than the demand. Therefore in the past weeks they demanded import ban for wheat from Ukraine. Poland and Ukraine were in the meantime able to find a solution that the transit of wheat through Poland is possible, however every such transport must in the future be accompanied by a convoy, which makes sure that no wheat would stay in Poland. Hungary, Slovakia and Bulgaria are insisting on their import bans for Ukrainian wheat, but are allowing its transit under certain circumstances. The EU has already reacted to the situation and has prepared emergency funding for the affected neighboring countries, second help package is planned, too.
