The state is implementing a comprehensive set of measures to support the liquidity of the agricultural sector and ensure export opportunities amid russian attacks on infrastructure. Authorities are working to optimize lending and attract international financing for agricultural producers. This is reported by the portal PromPolitInform, citing information from the Verkhovna Rada.
Russian strikes on ports, terminals, and vessels in the Black Sea are significantly impacting the agricultural industry of Ukraine, creating risks for product sales. To stabilize the situation, the authorities are implementing a number of steps covering financing and logistics, reported the Chairman of the Parliamentary Committee on Agrarian and Land Policy Oleksandr Haidu.
State mechanisms for supporting farmers
Under the “Affordable Loans 5-7-9%” program, restrictions on raising funds to replenish working capital have been lifted. These resources are critical for farmers, as they allow for the purchase of fuel, fertilizers, and seeds for the timely execution of sowing campaigns, the Member of Parliament noted.
The National Bank of Ukraine has also introduced more flexible terms for industry enterprises. The term for agricultural financing has been extended to 18 months, and procedures for restructuring existing credit obligations for businesses affected by the war have been simplified.
International aid and export policy
Regarding logistics routes, the government has reviewed the mechanisms for setting minimum export prices to remove obstacles for the export of grains, oilseeds, and their processed products. The goal is to ensure continuous export through all available supply channels.
Furthermore, Ukraine has requested grant support totaling 220 million euros from the European Commission. These funds are intended to be directed toward compensating interest rates on loans, which will allow farmers to attract up to 4 billion euros in additional bank financing, concluded Oleksandr Haidu.
Illustrative photo: International Maritime Organization / CC BY 2.0
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