EU, a "stab in the back" to Ukraine? - Seeks to reduce Ukrainian sugar imports to protect local farmers
The European Union is seeking to significantly reduce imports of Ukrainian sugar to protect local farmers. However, Kiev has stressed the importance of continuity in supplies and hopes for a fair agricultural deal with the bloc.
The European Commission is seeking to cut imports of Ukrainian sugar after EU producers complained that large shipments have fueled a price collapse.
Sugar imports from Ukraine are part of a larger dilemma the EU has faced over the past three years. Brussels initially offered free access to its agricultural markets to provide support after Russia's invasion, but protests by EU farmers have forced it to scale back support.
Local farmers have argued that imports from Ukraine have reduced local supplies, driving down prices and making it harder for them to secure sales.
Sources said the aim to reduce sugar imports was raised by the Union's agriculture commissioner when he met with leaders of French farm unions and industry representatives in Paris.
The commission did not say exactly how much imports could be cut, but stressed that they would be "well below" current levels, sources who were present at the meeting said.
The Ukrainian Ministry of Agriculture stressed the importance of maintaining continuity in supplies of Ukrainian products to the EU. Official sources expressed hope for a fair agricultural agreement between the Union and Ukraine. “The EU understands that we cannot bang our heads against the wall and return to the trade conditions that we had 10 years ago. Ukraine is flexible and is ready to ensure transparency in trade. This is more a political issue than a trade one,” they stressed.
The EU lifted duties on Ukrainian agricultural products after the start of Russia's invasion in 2022. The move led to a sharp increase in cheaper Ukrainian sugar imports, which reached 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, significantly exceeding the pre-war quota of 20,000 tons.
European sugar prices fell more than 30% last year. However, white sugar futures have recovered in the past two months, supported by a weakening outlook in major producers, including India.
Complaints from European farmers prompted the EU in July last year to re-establish an import quota of 262,650 tonnes. The bloc banned sugar imports from Ukraine after the first part of the quota was filled, forcing Ukraine to redirect sugar shipments to other countries, with Turkey as the main destination. The second part of the quota, for 109,440 tonnes of Ukrainian sugar, opened in January, but Ukraine has exported little so far.
EU sugar production has moved from 14.5 to 17.6 million tonnes per year since 2018, EU data showed. Consumption is stable at around 14 million tonnes, while imports account for 2-3 million tonnes.
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