Ukraine stands to lose $200 million from blocked food exports, NBU assesses

27 April, 11:16 PM
Harvesting in the Kyiv region at the beginning of August 2022 (Photo:REUTERS/Viacheslav Ratynskyi)

Harvesting in the Kyiv region at the beginning of August 2022 (Photo:REUTERS/Viacheslav Ratynskyi)

The National Bank of Ukraine (NBU) has estimated that Ukrainian agriculture sector stands to lose as much as $200 million after neighboring EU countries moved to block grain imports from Ukraine, Deputy NBU Governor Serhiy Nikolaichuk told Ukrainian news agency Interfax-Ukraine on April 27.

According to Nikolaichuk, the regulator has factored in the trade restrictions and reduced its Q2 forecast of agricultural exports by approximately $200 million.

While the losses of exports to neighboring countries which have introduced the corresponding restrictions will be greater, NBU also considered the possibility of reorientation to other countries.

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According to Nikolaychuk, the NBU did not include any additional losses in its Q3 and Q4 estimates, assuming normal grain exports would resume this summer.

On April 26, Russia blocked the operation of the Black Sea grain deal. Ukrainian Foreign Minister Dmytro Kuleba appealed to the UN to help in restoring the flow of Ukrainian grain through the “corridor” established by the 2022 agreement.

Previous media reports suggested the European Commission intends to propose a ban on imports of five agricultural products from Ukraine by the end of the year.

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