In response to the arrival of large quantities of Ukrainian cereals in European Union countries, Bulgaria and Hungary have announced a ban on the import of cereals and other agri-food products from Ukraine. Bulgaria justifies this measure by the fear of diversion of imports through the Romania-Bulgaria corridor, while Hungary has specified that the ban affects several products such as flour, honey, wine, bread, meat, and vegetables and will be in force until June 30. Hungary’s decision follows that of Viktor Orban’s nationalist government, which had already banned the entry of cereals to protect its farmers.
The European Union had suspended customs duties on Ukrainian products for one year in May 2022 and arranged to allow the country to export its grain following the closure of sea routes through the Black Sea. As a result, EU countries neighboring Ukraine experienced a surge in arrivals of corn, wheat, or sunflower, causing silos to become saturated and local prices to plummet.
Despite the import ban, Hungary will allow the transit of Ukrainian grain, but very strict procedures will be applied at border crossings to ensure their electronic tracking. Poland and Slovakia also approved similar measures, but the European Commission found them unacceptable. Bulgaria’s measure will come into force on April 24 and is expected to have a significant impact on the Ukrainian grain market in the EU.