The Black Sea remains the only acceptable route for exporting Ukrainian grain due to the large amount of shipments, while alternative routes have infrastructural restrictions and are not profitable for business, European Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevicius said.
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"Lithuania's position and proposal [to export Ukrainian grain via Klaipeda and other Baltic ports] are very much appreciated as well-intentioned, but the reality is somewhat different," Sinkevicius told reporters in Vilnius on Monday after a meeting with Lithuanian President Gitanas Nauseda.
"First of all, there is not enough infrastructure to transport these quantities of grain and the only way to do it is through the Black Sea. Everything else is fine, but not enough, plus it is time consuming because of the different [railway] gauge."
In the absence of alternative infrastructure, the route through Lithuania will not be sufficient, the European commissioner said, adding that it would also be inconvenient for business.
"Let's add one last component - commerce. Grain, its shipment, is also important for the business component, so that it reaches the necessary ports and buyers as quickly as possible, and here, too, transport via Lithuania becomes more difficult, as the cost of shipment also increases," he said.
Ukrainian farmers, in turn, have asked Lithuania to help receive subsidies from the European Union for the transportation of grain exports via Klaipeda and other European ports. In their opinion, this is the only way for Ukraine to export the accumulated crop stockpiles without losses.
The most important thing for Ukrainian farmers, who cannot export grain through the Black Sea, is to be able to deliver their products to European ports, which cannot be done without subsidies, head of the Ukrainian Agrarian Council Andrei Dikun said.
"What counts most to us is to get to the sea, because it has the largest throughput capacity. And to work with the Baltic countries, and that will be enough," Dikun said at a press conference in the Lithuanian parliament on Monday.
"Only if the 'green' corridor operates and transport subsidies work, the entire system will then work, because today, after calculating the losses from existing logistics, it is not functioning. It does exist, but it is very high-cost."
It is unprofitable to export Ukrainian goods via European ports without subsidies, head of the Lithuanian parliament's Committee on Rural Affairs Viktoras Pranckietis said.
According to representatives of Ukrainian farmers, grain is currently being shipped abroad through Danube ports, but this route raises the price of one tonne of grain by $60-$70, while the losses incurred by the country's farmers as a result stand at ten billion euros.
The surplus of oilseeds and grains may stand at around 30 million tonnes in Ukraine because this year's harvest will be some 25-30% higher than in 2022 due to favorable weather conditions, Dikun said.
Grain transit through Europe is needed in order to support Ukrainian grain exports, head of the Lithuanian parliament's Committee on Economic Affairs Kazys Starkevicius said.
The parties are also considering possible intervention purchases of excessive amounts of grain - an option that was resorted to previously - if grain prices drop below 100 euros per tonne. They can be purchases for storage, thus helping maintain market prices.
The Klaipeda port said earlier that it could accept more than ten million tonnes of Ukrainian grain, but transporting this grain to the port remains the biggest problem.
The Baltic countries' ports are able to transship 25 million tonnes of grain a year, the Lithuanian authorities said.
Meanwhile, Laimonas Rimkus, head of the Bega stevedoring company, which operates in the Klaipeda port, believes that following a decline in grain prices, it is no longer profitable for sales companies to export Ukrainian grain via Klaipeda and they are looking for suitable infrastructure in the Danube region.
Ukraine had for many years exported the bulk of grain and other agricultural products through its Black Sea ports. However, the ports' functioning was seriously restricted after the start of the military operation. The export flows have been diverted mainly to Europe.
Estimates from the Ukrainian Grain Association show that Ukraine may export nearly 48 million tonnes of grain in the new 2023-2024 season versus 58 million tonnes of grain in the previous season, which ended on June 30. ■