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The Government of Ukraine to Support Farming Operations

03/24/2022

Faced with the unprovoked invasion by the Russian Federation, the Ukrainian government is attempting as far as possible to support agricultural operations in areas that are unaffected by warfare. The government intends to guarantee up to 80 percent of loans to farmers and will subsidize interest payments according to outgoing Minister of Agriculture, Roman Leshchenko.

 

The major concern is that farmers should be able to sow the spring crop and in the event of crop failure due to natural events or warfare, they will be compensated for their losses. In keeping with current priorities, financial support is extended to small and medium-sized agricultural operations cultivating up to 25,000 acres.

 

A major emerging problem  is that Ukraine is currently unable to ship commodities from eastern seaports that are under attack both by land-based forces and by vessels operated by the Russian Federation.  Most of the multinational commodities traders have ceased operation of their terminals along the Black Sea coast, disrupting international trade and creating wide swings in the price of commodities.