Ukrainian farmers to lose $200mln due to bans on agri imports – central bank official

Ukraine’s central bank, the NBU, has reduced its forecast for exports of Ukrainian agricultural products in Q2 2023 due to the ban on imports in several Eastern European countries, its deputy governor Sergiy Nikolaychuk said in a briefing on Thursday.

"We have taken this factor [imports ban] into account and reduced exports of our agricultural products by about $200 million in the second quarter," Mr Nikolaychuk said.

He added that the losses would be more significant, "but we also took into account the possibility of reorientation to other countries, including through the use of the grain corridor."

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The NBU is yet to forecast any additional losses for Q3 or Q4 of this year.

"However, we are well aware that there are certain risks associated with the possibility of prolongation of those sanctions by neighbouring countries and with even greater complications in the grain deal," Mr Nikolaychuk said.

Earlier in April, Poland, Hungary, Slovakia and Bulgaria imposed a ban on Ukrainian grains and selected agricultural products until the end of June.

The EU’s executive arm criticised the ban and instead proposed to allocate EUR 100 million for EU farmers in exchange for lifting the ban on Ukrainian agricultural imports, but negotiations are still ongoing.