Ukraine Needs EU Agricultural Subsidies to Stay Competitive
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Ukraine needs EU agrarian subsidies

Without adequate state support and EU subsidies in the context of European integration, Ukrainian farms, which cultivate 80% of all land in the country, may lose competitiveness in the markets of third countries, according to Logos Press.
Эдуард Лисовой Reading time: 1 minute
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The integration of the Ukrainian agricultural sector into the EU needs clear economic calculations and a clear model of support, taking into account the structure of production and the role of the industry in the state economy. The head of the All-Ukrainian Agrarian Rada, Andriy Dikun, said this during a roundtable discussion, the press service of the All-Ukrainian Agrarian Rada has reported.

“Today in Ukraine there is no clear understanding of how much money is needed – both as investments and as subsidies – both at the level of individual enterprises and at the level of the whole industry. At the same time, discussions continue in the EU on limiting the amount of subsidies “in one hand”. This issue is critical for Ukraine,” AgroPortal.ua quoted the WAR head as saying

Andriy Dikun warned that the lack of adequate support from the national government and the EU would have disastrous consequences not only for the Ukrainian agricultural sector, but also for the Ukrainian economy as a whole. Because unlike the EU countries, the share of Ukrainian agricultural sector in GDP is not 1%, but 14%. And taking into account the processing industry it reaches 20% of GDP.

Separately, the head of the WAR drew attention to the fact that European approaches to the structure of farms need to be adapted to Ukrainian realities, given the shortage of labor in rural areas, demographic challenges and the consequences of the war.



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