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exports this year fell heavily after the collapse of the Black Sea Grain Initiative on July 17.
In terms of the main export categories, the structure of Ukrainian agricultural exports in 2023 closely resembles the previous year's figures. Grain crops accounted for 39% of exports, vegetable oils constituted 26%, meat accounted for 4%, and dairy products, eggs, and honey represented 2% of the total. However, there was a decrease in oilseed exports, dropping to 12% from 16% in 2022.
The suspension of the Black Sea Grain Initiative on July 17 has led to more agricultural products being transported via road and rail, while shipments by sea to Africa have become increasingly challenging.
Deputy Minister of Agricultural Policy, Taras Vysotsky, acknowledged that the agricultural sector will continue to face challenges due to limited export opportunities and low prices in the domestic market, despite a good harvest in 2023, which exceeded last year's production by 5-10%. Vysotsky pointed out that farmers estimate losses in the sector to be around $3.5bn in 2023. He emphasized that the key to addressing this problem lies in improving logistics, as optimizing export routes can lead to higher prices in the domestic market.
2.4 The EC presents a project to provide long-term security guarantees for Ukraine
A document was presented to the EU member states. The project’s framework includes the following proposals:
● An effective and sustainable mechanism for providing military equipment that mobilizes the European defense industry
● Training of the Ukrainian Armed Forces
● Deepening cooperation with the Ukrainian defense industry to strengthen its potential and harmonize standards
● Strengthening Ukraine's ability to resist cyber and hybrid threats and disinformation
● Supporting Ukraine's efforts to clear mines and overcome pollution caused by explosive residues
● Helping Ukraine with EU accession reforms, as well as strengthening its ability to control stockpiles of firearms, light weapons, and ammunition and to counter any illicit trafficking
● Supporting the country's energy transition and nuclear security efforts
● Exchange of intelligence and satellite images
EU ambassadors will discuss the proposals this week, and member state leaders will at a summit next month. This project will form the basis of cooperation between Ukraine and the G7 countries. Some of Kyiv's key allies are looking to strike deals this year. At the beginning of December, an EU delegation will arrive in Ukraine to present proposals on security guarantees for Ukraine.
12 UKRAINE Country Report December 2023 www.intellinews.com