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A Conversation with Ukrainian Minister for Agrarian Policy and Food, Vitaliy Koval 

This week, the expiration of exceptional trade measures  will see Kyiv lose access to the EU market on favorable conditions and return to its pre-war quotas. How are you preparing?

Ukraine continues to engage in dialogue with our European partners even at the final stage. We are grateful for their willingness to seek constructive formats. Ukraine is not a threat to the European market. We are part of its stability. We respect the concerns of EU member states for their farmers. But we must find a common model of partnership, not competition. Our farmers are reliable suppliers, not competitors, as Russian propaganda tries to show. We are already integrating into European agricultural legislation, improving quality, investing in processing, environmental standards, and supply chain transparency. And we are defending European values.

Supporting Ukraine today is a contribution to the stability and food security of the whole of Europe. It is a choice in favor of a future where Ukraine is a full-fledged part of the European community. 

Help us understand what is at stake. What are the implications for the Ukrainian economy?

An automatic return to the trade regime of the Association Agreement in the 2021 version without a transition period or additional agreements will have negative consequences for Ukraine’s economy and indirectly affect the EU economy. We are talking about a 2.5% drop in Ukraine’s GDP. This means 3.3 billion euros in foreign exchange earnings. Ukraine will remain a reliable food supplier to the EU and the world. Restrictions on access to our largest trade market will definitely not contribute to stability. Ukrainian farmers, logistics companies, the processing industry, and thus the state budget of the country at war will be hit. In the current conditions of war, any new barriers to Ukrainian exports directly mean job losses, reduced foreign exchange earnings, and a decrease in the state’s ability to finance defense.

You say Ukraine could lose 3 billion euros in foreign exchange earnings at a time in which Russia is pounding your country with missiles viciously.  How could the loss of access to European markets on favorable conditions impact Ukraine’s morale – but also the war effort?

We are not speculating on the war — we are simply explaining its reality. When Ukrainian farmers sow and harvest under shelling, when agricultural enterprises invest in processing, believing in the future, access to the EU market is not just about economics. It is about trust, partnership, and moral support.

Losing 3 billion euros in foreign exchange earnings due to trade barriers means losing part of a resource that is now critical to the sustainability of our economy and our ability to continue our defense and humanitarian efforts. At this moment, solidarity and predictability on the part of the EU are no less important than weapons. It is a signal that we are not being left alone — neither on the front lines nor in the economy.

The European Commission promised to find an appropriate interim solution and suggested there would be no cliff-edge. Are you disappointed by the way these negotiations have turned out to be?

Ukraine offers a constructive vision of trade relations that takes into account the interests of all parties and creates conditions for sustainable development. We are not asking for privileges – only fair, transparent and stable rules for farmers working in a time of war.

What do you attribute to the fact that an extension of duty free exports was not found this time around. What is the reason in your view?

The process of rapprochement with the EU is always an adaptation, sometimes a difficult one. But we have already proved that we are able to work in the face of uncertainty and remain resilient. Our position before our European partners is clear: Ukraine is not asking for privileges. We are asking for a partnership that works in times of war. It is about trust. It’s about equal, transparent and predictable trade rules that help us survive. 

Our European partners talk about protecting the interests of their farmers. But it is not their farmers who go out to the fields every day to the sound of sirens, it is not their tractors that are destroyed by drones from the air, it is not their fields that are strewn with mines. We have to find solutions that will satisfy all members of the big European family. Where there is a dialog, there is always a result. I am sure we will succeed. Together.

Do you foresee a longer term solution after the result of the Polish elections, for example, that takes you closer to the deal that is about to expire?

We see the future in the full integration of Ukrainian agricultural products into the single market. Ukraine is already a part of the common economic space, and we are ready for deeper integration, including compliance with high environmental, health and safety standards. 

The Ukrainian agricultural sector is an active importer of goods and input materials from the European Union: seeds, machinery, fertilizers, plant protection products, and fuel. They are an integral part of the products manufactured in Ukraine. This is a mutually beneficial partnership that supports jobs in both the EU and Ukraine.

Ukraine is already integrating into the European space: implementing standards, developing sustainable processing, and investing in innovation.

The Ukrainian agricultural sector is a partner that has proven its reliability even in the most difficult times. We are open to deeper cooperation, investments and solutions that will be beneficial for both parties.

The EU will not gain a competitor, but an ally in ensuring food security, supply chain sustainability, and rural development.