Ukraine is offering Poland a Plan of Understanding

Ukraine has developed and is offering Poland a plan to unblock the border – the Plan of Understanding. This was announced today by Prime Minister of Ukraine Denys Shmyhal while on the border with the Republic of Poland.

Denys Shmyhal underlined that Ukraine and Poland remained good partners and strategic allies. However, the blockade is harming the Ukrainian economy and the ability to better defend itself against the russian aggressor.

He stressed that Ukraine had not been selling grain, corn, sunflower seeds and rapeseed to the Polish market for the past 5 months. Ukrainian grain is only in transit through Poland. In total, only 5% of agricultural exports cross the Polish border today. And most importantly, the blockade is affecting the entire Polish-Ukrainian trade and the economies of both countries. That is why it is necessary to address this issue and make constructive decisions.

According to the Head of Ukrainian Government, the Plan of Understanding consists of five steps.

The first one, in particular, envisages Ukraine’s agreement to the restrictions proposed by the European Commission on agricultural exports.

“These are automatic safeguard measures that were presented as part of the European Commission’s decision to extend duty-free trade between the EU and Ukraine. These include restrictions on poultry, eggs, and sugar,” explained Denys Shmyhal, adding that Ukraine agrees with the proposal to export these goods to the EU without quotas and duties in volumes no greater than the average in 2022 and 2023. If it exports more, the restrictions will return.

In addition, Ukraine is ready to extend the mechanism of verification of exports of grain, corn, sunflower and rapeseed.

According to the second step, Ukraine is sending an appeal to the European Commission with a proposal to conduct an urgent screening, i.e. an analysis of clusters 4 and 5, which include agricultural policy and transport. This is necessary to prevent manipulation of the quality of Ukrainian agricultural products.

“At the same time, Ukraine’s principled position is full trade liberalisation with the EU. This is a continuation of the ‘economic visa-free regime’ – the abolition of import duties and other restrictions on bilateral trade between Ukraine and the EU. This will require a decision of the Association Council based on Article 29 of the relevant Agreement,” said Denys Shmyhal, stressing that the issue of trade between Ukraine and the EU will be resolved with the EU, not at the level of individual countries.

The third step is to propose that the Polish Government adopt a joint appeal to the European Commission calling for a ban on russian agricultural exports to the EU.

According to the Prime Minister, in 11 months of 2023, russia sold EUR 2.5 billion worth of agricultural products and food to Europe. In particular, grain worth almost EUR 400 million, vegetables worth EUR 300 million, and oilseeds worth EUR 250 million. In 11 months of 2023, russia sold 5.1 million tonnes of food to Europe. For the whole of 2022, it was 4.9 million tonnes.

Denys Shmyhal noted that the growth of russian food exports to the EU during the war must be stopped. The Prime Minister is convinced that Ukraine and Poland can replace these products.

In addition, Ukraine is addressing the EC with two more proposals:

• to consider additional restrictions and enhanced monitoring of third-country agricultural imports to the EU, as is currently the case with Ukraine;
• to launch joint control at the border between Ukraine and the EU and to expand the pilot project on customs information exchange.

The fourth step is to set up a Trilateral Headquarters involving Ukraine, Poland and the European Commission to be co-chaired by agriculture ministers of the two countries and a representative of the European Commission. Ukrainian and Polish agricultural associations may also join its work.

The fifth step aims to resolve the issue of border crossing not only for ammunition, military equipment, humanitarian aid, medical supplies, but also for other groups of goods.

“The Trilateral Headquarters should work around the clock, and the issue of blocking the border should be resolved much earlier than 28 March, the date when a joint meeting of the governments of Ukraine and Poland is to take place,” the Prime Minister said, adding that otherwise Ukraine reserves the right to apply mirror measures at the checkpoints.

“Ukraine’s 5-step plan is a fair approach that benefits Poland. Ukraine is making some painful compromises. But we want to be partners for the EU, for all our western neighbours. We are open to a constructive dialogue,” concluded Denys Shmyhal.

https://www.kmu.gov.ua/en/news/denys-shmyhal-ukraina-proponuie-polshchi-plan-vzaiemoporozuminnia