Tax and accounting insights for Ukraine
24.02.24
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Ukraine has developed a plan to unblock the border with Poland - the "Plan of Understanding".

Step 1. Ukraine agrees to the restrictions proposed by the European Commission on our agricultural exports. These are automatic safeguard measures that were presented as part of the European Commission's decision to extend duty-free trade between the EU and Ukraine. These include restrictions on poultry, eggs, and sugar.

Ukraine agrees with the proposal to export these goods to the EU without quotas and duties in volumes no greater than the average in 2022 and 2023. If we export more, restrictions will be reintroduced.

We are also ready to continue the mechanism of verification of exports of grain, corn, sunflower, and rapeseed. That is, these four groups of goods will not enter the Polish market without Poland's permission.

Step 2. Ukraine sends an appeal to the European Commission with a proposal to conduct an urgent screening, i.e., an analysis of clusters 4 and 5, which include agricultural policy and transport.

This is necessary to remove manipulations regarding the quality of our agricultural products and whether the support for our farmers meets the standards of the World Trade Organization once and for all.

At the same time, Ukraine's principled position is full liberalization of trade with the EU. This is a continuation of the "economic visa-free regime".

The issue of trade between Ukraine and the EU will be resolved with the EU, not at the level of individual countries.

Step 3. We propose that the Polish government adopt a joint appeal to the European Commission calling for a ban on Russian agricultural exports to the EU.

In the first 11 months of 2023, Russia sold €2.5 billion worth of agricultural products and food to Europe. 5.1 million tons of food. For the whole of 2022 - 4.9 million tons. Russian food exports to the EU are growing during the war! This must be stopped! Ukraine and Poland can definitely replace these products.

We are also addressing the European Commission with two more proposals:

To consider additional restrictions and increased monitoring on agricultural imports from third countries to the EU, as is currently the case with Ukraine.

We are calling for the launch of joint control at the border between Ukraine and the EU. We also propose to expand the pilot project on customs information exchange.

Step 4. We propose to create a "Trilateral Headquarters: Ukraine, Poland, European Commission" to be co-chaired by the agriculture ministers of Ukraine, Poland, and a representative of the European Commission. We will also involve Ukrainian and Polish agricultural associations in the work of this headquarters. We have to work around the clock to resolve all misunderstandings promptly.

Step 5. The blockade of the border by Poland has long gone beyond the grain blockade. Today, this blockade threatens the national security of Ukraine.
We are grateful to the Polish government for its clear position on the passage of ammunition, military equipment, humanitarian aid, and medical supplies across the border. We believe that this approach should be extended to fuel, which is critically important for Ukraine.

We welcome the initiative of Prime Minister Donald Tusk to include border crossing points with Ukraine and relevant sections of the railroad in the list of critical infrastructure.

For its part, the Ukrainian Government has also taken the appropriate decisions to recognize border crossing points with our western neighbors as critical infrastructure.

At the same time, we hope that the joint Trilateral Headquarters will find a solution to the unimpeded passage of other groups of goods. After all, today there are more than 9,000 trucks on the border on both sides.

The trilateral headquarters should work around the clock, and the issue of blocking the border should be resolved much earlier than March 28, the date when a joint meeting of the governments of Ukraine and Poland is to take place.

Otherwise, Ukraine reserves the right to apply mirror measures at the checkpoints.

Denys Shmyhal Prime Minister of Ukraine

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