The European Commission is contemplating significant cuts to Ukrainian sugar imports after complaints from EU producers about plummeting sugar prices, Reuters reported on March 20, citing information from three sources.
The EU initially opened its agricultural markets to Ukraine for free to support the country after Russia’s invasion began, but farmer protests in multiple countries have since forced the bloc to scale back.
According to Ukraine's agriculture ministry, agricultural products accounted for 59% of Ukraine's total exports in 2024, providing vital support to the war-torn country's economy.
Reuters reports that EU Agriculture Commissioner Christophe Hansen told French farm union leaders and industry representatives at the Paris farm show in February that he intends to reduce Ukraine's sugar imports to levels "well below" current volumes.
Hansen also aims to limit other imports from Ukraine, such as grains, according to two unnamed trade sources cited by Reuters.
European sugar prices fell by more than 30% last year, according to the latest EU data, though white sugar futures have rebounded in the past two months due to weakening production outlooks in major producing countries, including India.
After the EU abolished duties on Ukrainian agricultural products in 2022, Ukrainian sugar imports reached 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24 — far exceeding the pre-war quota of 20,000 tons.
Following protests from European farmers, the EU reinstated a Ukrainian sugar import quota of 262,650 tons in July 2023.
According to Ukraine's sugar union Ukrtsukor, cited by Reuters, the EU halted sugar imports from Ukraine after the first part of the quota was exhausted, forcing Ukraine to redirect sugar shipments to other countries, with Turkey becoming the main destination.
The second part of the quota, allowing 109,440 tons of Ukrainian sugar, opened in January, but Ukraine has exported little so far.
Agricultural trade between Ukraine and the EU reached $17 billion in 2024, with the EU remaining Ukraine's largest trading partner.
Liliane Bivings
(Updated: )
