220 million euros for farmers: Ukraine has appealed to the European Commission for support due to the port blockade
7 August 12:39
Ukraine has appealed to the European Commission to allocate EUR220 million in non-repayable aid to compensate for interest on loans to small and medium-sized agricultural producers who have suffered as a result of the blockade of maritime exports caused by Russian attacks on the ports of Greater Odesa. This was reported by the press service of the Ministry of Agrarian Policy and Food, according to "Komersant Ukrainian".
“Due to Russia’s blockade of maritime exports, thousands of Ukrainian farmers are unable to sell the produce they have already grown or obtain funds to continue their operations. That is why we have appealed to the European Commission with a proposal to support Ukrainian producers by compensating them for interest on loans. This will allow farmers to maintain liquidity, carry out the fall planting campaign, and avoid being forced to sell their produce at below-market prices,” said Minister Taras Vysotsky.
The Ministry of Agrarian Policy explained that the funds are proposed to be channeled through the state program “Affordable Loans 5-7-9%” to ensure the liquidity of enterprises that, due to Russian attacks on the ports of Greater Odesa, have lost the ability to export their products unimpeded.
As noted by the ministry, the proposed EU contribution will allow for the creation of a loan portfolio of up to EUR4 billion to finance farmers’ working capital, with a final interest rate for borrowers of no more than 10% per annum. Small and medium-sized agricultural producers who meet the requirements of the state program and the environmental, social, and governance (ESG) criteria will be eligible for this support.
Small and medium-sized agricultural producers who meet the program’s requirements and environmental, social, and governance (ESG) criteria will be eligible for this support. The funds raised will enable farmers to cover wages, land rent, crop storage and processing, and preparations for the new planting season.
According to the ministry’s estimates, in the 2026/27 marketing year (MY, July–June), Ukraine is expected to export approximately 64.4 million metric tons of agricultural products; however, due to ongoing restrictions on seaport operations, this figure could be reduced by nearly half—to about 29.6 million metric tons.
The ministry also warned that effective storage capacity could be fully utilized as early as October, and by November, more than 9 million metric tons of grains, oilseeds, and meal may lack the necessary storage capacity.
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Blocked Ports
Ukrainian seaports are currently blocked for the first time since 2022. Ninety percent of Ukraine’s exports are shipped by sea. A decline in the frequency of ship calls began to be observed after a sharp intensification of Russian attacks on port infrastructure and civilian vessels in the second half of July.
According to preliminary data from the State Customs Service following the start of the port blockades, Ukrainian exports fell to $3.1 billion in July 2026, down from $3.5 billion in June.
Since September 2023, when the Ukrainian maritime corridor in the ports of Greater Odesa became operational, more than 190 million metric tons of cargo have passed through it, of which more than 110 million metric tons were grain, according to the Ministry of Development.
“Loans available at 5–7–9%”
Earlier, on August 6, the government approved an emergency support package for Ukrainian farmers in response to Russian aggression in the Black Sea and the blockade of export routes.
Changes to the “Affordable Loans at 5-7-9%” program will allow farmers to obtain preferential loans to replenish their working capital. The total volume of lending under the program will amount to up to 80 billion UAH, and the state will compensate for the difference in interest rates.
The state program “Affordable Loans 5-7-9%” was created to support micro, small, and medium-sized businesses in Ukraine. It provides financing of up to 150 million UAH at a reduced interest rate ranging from 1% to 9% per annum, depending on the region, the purpose of the loan, and the number of jobs created. Loans can be obtained from many Ukrainian banks.
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