ROME, September 22. /TASS/. Ukraine’s dispute with a number of neighboring countries that have banned the import of grain and limited import of agricultural products from this country will not affect global agricultural markets.

"At the moment significant impact on the world market is unlikely, since the ban deals with imports to three countries only, and transfers to the third markets remain allowed," Monika Tothova, economist at the UN Food and Agriculture Organization (FAO), told TASS.

She recalled that before the start of the special military operation, almost 90% of Ukraine’s commodity exports fell to the share of sea transportation.

"Ukraine had to use to alternative means of exports. Although the Black Sea Grain initiative helped to ease pressure when it was operational, it is currently not <…>. Constraints related to rail and road infrastructures limited Ukraine’s export capacity through non-maritime routes throughout the first half of 2022. The European Union introduced the "Solidarity Lanes" in May 2022 to facilitate exports. The EU also granted - and later extended the duty-free import regime for Ukrainian products for another year," the expert recalled.

She noted that Ukrainian farmers rely on non-sea transport channels (rail, freight and river).

"Given the challenging economic situation in Ukraine as a result of the war, farmers are considering selling at lower prices to ensure some income. Even when accounting for the logistical and transportation cost, the prices at which goods from Ukraine reach the neighboring markets can be lower than the prices there, creating tension with local producers who are directly competing with these goods," Tothova said.

In April, five Central European countries (Bulgaria, Hungary, Poland, Romania and Slovakia) banned the import of grain and other agricultural products from Ukraine. They later canceled these measures in exchange for the European Commission's decision to establish, first until June 5 and then until September 15, an embargo on supplies from Ukraine of four types of grains and oilseeds - wheat, corn, rapeseed and sunflower seeds. The five countries are now seeking an extension of the embargo until at least the end of the year.

Ukrainian President Vladimir Zelensky stated that Kiev is strongly against any further restrictions on grain exports. According to him, the European Commission is violating promises, the provisions of the association agreement, and the conditions of the free market, so Kiev is ready to defend its rights in court. In the context of the EC’s refusal to extend this embargo after September 15, Budapest, Bratislava and Warsaw extended the ban on the import of Ukrainian agricultural products at the national level.