Ukraine and Italy discuss support for agricultural exports following port attacks

Minister of Agrarian Policy and Food of Ukraine, Taras Vysotskyi, held a meeting with the Ambassador Extraordinary and Plenipotentiary of the Italian Republic to Ukraine, Carlo Formosa. Deputy Minister Denys Bashlyk also attended the discussion. The primary focus of the talks included the consequences of Russian attacks on the port infrastructure of Greater Odesa, the ongoing risks to Ukrainian agricultural exports, and potential avenues for Italy to increase support for Ukrainian agricultural producers.

Minister Vysotskyi noted that recent attacks on civilian vessels and port infrastructure, occurring in late July and early August, have caused a significant decline in agricultural exports. In August, Ukraine was only able to export about one-third of its potential volume. The Minister stated that while alternative routes could increase this figure to 50%, they cannot fully replace the capacity of the Black Sea ports. Consequently, the country faces the dual challenge of maintaining resilient export routes while creating additional storage capacity for the harvest.

Ukraine's total agricultural export potential is currently estimated at 60 million tonnes. If export capacity remains constrained, large volumes of produce will require temporary storage. The parties discussed Italian support for establishing temporary grain-storage facilities, including the use of grain storage bags and a voucher system that would allow farmers to acquire the necessary equipment and services directly. This approach aims to streamline the distribution of resources to those in need.

To date, Ukraine has secured approximately USD 35 million in international funding for temporary grain storage, including USD 25 million from the World Bank and USD 10 million from other partners. Minister Vysotskyi emphasized that further funding is essential to meet the sector's needs. The Italian side indicated it is considering providing support through programs run by the Food and Agriculture Organization of the United Nations (FAO), which could complement the provision of grain storage bags.

Additionally, the parties addressed ongoing bilateral projects, particularly in the Odesa region, where initiatives to restore irrigation systems and support rural development are currently underway. Another priority is the TERRA program, designed to improve access to finance for small and medium-sized agricultural enterprises. The two sides agreed to accelerate the organizational steps required to implement the program, while also stressing the importance of expanding the EU Solidarity Lanes and diversifying logistics through rail routes to ensure the continued flow of Ukrainian agricultural products.