Ukraine denies it is considering a compromise on agriculture in EU talks

Terms for the integration of Ukraine’s agricultural sector into the European Union will be determined during negotiations, two ministers said in mid-February, denying that Kiev was considering easing the EU’s green deal. However, a senior official earlier told Reuters news agency that Ukraine could consider giving up EU farm subsidies in exchange for a softening of the green deal during accession talks starting in March.

“The terms of Ukraine’s agricultural sector’s accession to the EU’s Common Agricultural Policy (CAP) will be determined during the negotiation process,” Deputy Prime Minister Olha Stefanishyna and Farm Minister Mykola Solsky said in separate statements. “There can be no talk of any abandonment of subsidies and grants, as the rules should be the same for everyone,” they said.

Ukraine, which has a huge agrarian complex capable of feeding hundreds of millions of people, was invited to join the EU last year and will start sectoral talks on its accession in March to harmonise its legislation with EU requirements. Integrating Ukraine’s vast agricultural sector, which before Russia’s full-scale invasion in 2022 was the world’s fourth-largest supplier of grain, into the EU is likely to be highly sensitive, both politically and economically. Kyiv could be eligible for 96.5 billion euros ($104 billion) in subsidies from the EU’s Common Agricultural Policy over seven years, if current rules are applied to an expanded union.

“It seems to me that the ideal negotiating strategy (is to achieve) fewer restrictions on trade, fewer restrictions on the environment (for Ukrainian farmers) and we are willing to trade this for subsidies,” the official said. The official requested anonymity to discuss sensitive matters. A European Commission spokesperson didn’t immediately return a request for comment.

The talks come at a sensitive time, with farmers across Europe taking to the streets in protest in recent weeks at the EU’s Green Deal regulations on animal welfare and pesticide use, as well as the need to leave 4% of farmland fallow. The subsidy payouts to Kyiv could also force cuts in farm subsidies to existing member states of about 20%, the Financial Times reported last autumn. The EU’s decision to waive import duties on all Ukrainian food in 2022 has already fuelled protests in neighbouring bloc members as farmers struggle to compete with cheaper Ukrainian farm products.

The European Commission last month said it would extend the suspension of its import duties on Ukrainian exports. But it also proposed measures to limit agricultural imports from Ukraine and offer greater flexibility on rules for fallow land in a bid to quell protests by angry farmers in France and other EU members.