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Compensating for the Indirect Effects of the Russian Invasion of Ukraine – Varied approaches from Bulgaria, Poland and Romania

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  • Rositsa Beluhova‐Uzunova
  • Stefan Mann
  • Maria Prisacariu
  • Adrian Sadłowski

Abstract

Following the Russian invasion of Ukraine, the European Union (EU) lifted import tariffs for Ukrainian commodities to maintain Ukrainian exports to the world market. This led to a considerable decrease of prices for cereals and oilseeds in affected Member States. The European Commission has allocated 56 million euros to farmers in Bulgaria, Poland and Romania to compensate them for losses caused by this opening of the EU. This money has been supplemented by another 56 million euros from national budgets. As the funds were insufficient to fully compensate farmers for their losses, the three Member States had to define selective criteria when deciding on the distribution of the funds. Bulgaria opted for acreage‐based compensation payments for sunflower producers, and Romania chose to support farmers storing wheat, thereby excluding smaller producers without storage facilities. Poland compensated a large range of crop producers but cut the amount paid to the largest farms. A comparison of these three approaches is a good case in point for demonstrating the interplay between emergency relief and political priorities of national governments. Après l'invasion de l'Ukraine par la Russie, l'Union européenne (UE) a levé les droits de douane sur les importations de produits ukrainiens afin de maintenir les exportations ukrainiennes sur le marché mondial. Cela a entraîné une baisse considérable des prix des céréales et des graines oléagineuses dans les États membres concernés. La Commission européenne a alloué 56 millions d'euros aux agriculteurs de Bulgarie, de Pologne et de Roumanie en compensation des pertes causées par cette ouverture du marché communautaire. Ce montant a été complété par 56 millions d'euros supplémentaires provenant des budgets nationaux. L'ensemble étant insuffisant pour compenser pleinement les pertes des agriculteurs, les trois États membres ont dû définir des critères sélectifs pour décider de la répartition des fonds. La Bulgarie a opté pour des paiements compensatoires basés sur la superficie pour les producteurs de tournesol. La Roumanie a choisi de soutenir les agriculteurs stockant du blé, excluant ainsi les petits producteurs ne disposant pas d'installations de stockage. La Pologne a indemnisé un large éventail de producteurs agricoles, mais a réduit le montant versé aux plus grandes exploitations. Une comparaison de ces trois approches constitue un bon exemple concret pour démontrer l'interaction entre les secours d'urgence et les priorités politiques des pouvoirs publics nationaux. Nach dem russischen Einmarsch in die Ukraine hob die Europäische Union (EU) die Importzölle für ukrainische Waren auf, um ukrainische Exporte auf den Weltmarkt weiter zu ermöglichen. Dies führte zu einem spürbaren Preisverfall von Getreide und Ölsaaten in den betroffenen Mitgliedsländern. Die Europäische Kommission allozierte 56 Millionen Euro für Landwirte in Bulgarien, Polen und Rumänien, um für durch die Grenzöffnung der EU entstehende Verluste zu entschädigen. Diese Mittel wurden durch 56 Millionen Euros aus den nationalen Haushalten ergänzt. Da dies nicht ausreichte, die Landwirte vollumfänglich für ihre Verluste zu entschädigen, mussten die drei Mitgliedsstaaten für die Zuweisung der Gelder selektive Kriterien definieren. Bulgarien entschied sich für hektarbasierte Kompensationszahlungen für Sonnenblumenproduzenten, und Rumänien entschied sich, Zuschüsse an Landwirte zu zahlen, die Weizen lagern, und damit Kleinbauern ohne Lagermöglichkeiten von der Förderung auszuschliessen. Polen kompensierte eine Reihe von Kulturen, aber beschränkte die Auszahlungssumme an Grossbetriebe. Ein Vergleich dieser drei Ansätze ist ein gutes Beispiel für die Verquickung zwischen Nothilfe und den politischen Prioritäten nationaler Regierungen.

Suggested Citation

  • Rositsa Beluhova‐Uzunova & Stefan Mann & Maria Prisacariu & Adrian Sadłowski, 2024. "Compensating for the Indirect Effects of the Russian Invasion of Ukraine – Varied approaches from Bulgaria, Poland and Romania," EuroChoices, The Agricultural Economics Society, vol. 23(1), pages 11-18, April.
  • Handle: RePEc:bla:eurcho:v:23:y:2024:i:1:p:11-18
    DOI: 10.1111/1746-692X.12422
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    1. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
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    1. Sadłowski, Adrian & Zając, Adam, 2024. "Export of Ukrainian agricultural products through Poland – route restrictions," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(4), December.

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