Last week, Ukrainian Railways (UZ) interrupted the provision of a 30 per cent discount for the rail transportation of agricultural products from frontline territories to the country’s ports. The All-Ukrainian Agrarian Council (BAP) defined this initiative as unlawful and asked the government to intervene and restore the discount.
The bone of contention is a new document from the Ukrainian government with an updated list of combat zones. UZ “believes that due to the cancellation of the previous order of the Ministry of Reintegration, the grounds for providing a preferential tariff have also lost their validity”, the BAP underlined.
On the other hand, the order providing compensation through discounts remains in force. Consequently, the discount is still legally valid, the Council argued. BAP “requires the government leadership and relevant ministries to ensure the implementation of current legislation on providing a 30 percent discount on established tariffs for export transportation of agricultural products from frontline territories”.
The Ukrainian grain problem
The situation regarding farmers in Ukraine has been a delicate one ever since the beginning of the Russian invasion over two years ago. With many trade routes closed due to the war, Ukraine had to export a significant amount of its agricultural products, mostly grain, to the West. This did not sit well with neighbouring Poland, where farmers protested on multiple occasions, claiming that the higher imports of Ukrainian grain was hindering the national market.