Debate: Ensuring proper functioning of EU-Ukraine Solidarity Lanes
Date: THURSDAY, 14 DECEMBER 2023
Speaker: Helena Dalli
Language: EN

The EU-Ukraine solidarity lanes action plan was launched in 2022, following Russia’s blockade of Ukraine’s Black Sea ports. This blockade had immediate consequences, in particular on food exports to the rest of the world. We needed to react quickly. We established reliable alternative routes to bring the grain out of Ukraine via the EU by land, inland waterways and through EU ports. These are the solidarity lanes.  They have delivered and continue to do so. Between May 2022 and November 2023, they allowed Ukraine to export nearly 112 million tonnes of goods, including over 48 million tonnes of grain, oilseeds and other related products, and to import around 40 million tonnes of goods it needs, from military to humanitarian aid through fuel and other indispensable products.  When it comes to grain exports from Ukraine, clearly part of these exports are destined for the EU market. We need to facilitate the transfer of this grain to import-dependent Member States, such as Spain and others, while avoiding a situation where the grain remains where it is not needed.  We are also monitoring other imports from Ukraine, in particular sugar, poultry and eggs, where we observe sharply increased imports. Ukraine, on its side has adopted an action plan, as agreed at the end of the preventive measures in September. This includes government licenses for exports of four products – wheat, corn, rapeseed and sunflower seeds – to neighbouring EU states. In this context, the commission is in regular contact with the Hungarian, Polish and Slovakian authorities, and we have called on these three countries to lift their unilateral bans.  Our priority now is to work constructively with all parties to ensure that the action plan is effectively implemented. But while EU-Ukraine trade constitutes a main source of revenue for Ukraine, it also substantially benefits EU companies. Since they were set up, the total value of trade via the solidarity lanes is estimated at around EUR 127 billion, with around EUR 44 billion for Ukrainian exports and over EUR 83 billion for Ukrainian imports. The recent resumption of trade through the Black Sea is a very positive development in terms of facilitating Ukrainian exports.  However, the Commission’s commitment to strengthening the EU-Ukraine solidarity lanes and generally improving EU-Ukraine and EU-Moldova connectivity is stronger than ever. The war, as well as Ukraine’s and Moldova’s European path, means one thing for transport: the solidarity lanes are here to stay.  Beyond the emergency phase, our action in the framework of the solidarity lanes represents the groundwork for a fully connected, interoperable and sustainable trans-European network from Portugal to Ukraine, from Finland to Moldova. This is why the Commission, together with the Member States, the Ukrainian and the Moldovan authorities, continue with their efforts to strengthen the solidarity lanes and support Ukraine.  The Commission is focused on increasing capacity and reducing costs by eliminating unnecessary checks and streamlining processes where needed, upgrading infrastructure over the short, medium and long term, and enhancing the potential of these routes. Investment in infrastructure and equipment remains crucial. This is particularly important in our five Member States bordering Ukraine, where we still have work to do on infrastructure and procedures.  Against this backdrop, the Commission is prioritising new connectivity infrastructure between Ukraine and Moldova and their EU neighbours. In November 2022, the Commission, European Investment Bank, European Bank for Reconstruction and Development, and World Bank pledged to invest EUR 1 billion in this solidarity lanes. Additionally, EUR 890 million are available from different funding streams, including the Connecting Europe Facility (CEF) and the EU’s Cohesion Policy, to improve the connectivity to Ukraine on the Member States’ territory.  Most of the medium- to long-term deliverables have been brought in through CEF as the EU’s main instrument to implement the trans-European transport network and ensure seamless cross-border connectivity within the EU and with its neighbours.  Most recently, the Commission allocated to EUR 150 million for infrastructure projects at main TEN-T rail and road border crossing points between Ukraine, Moldova and the EU. Six projects are being implemented with Ukraine and three with Moldova, focusing on improving border-crossing capacity and expanding EU standard rail gauge into Ukraine in order to ease the interoperability between EU and UA networks. This is the first time that Ukraine and Moldova have received this kind of funding, and the projects are an excellent example of cross-border cooperation.  We are pleased to see strong cooperation and clear commitment of all frontline Member States. These efforts have a direct impact on Ukraine’s ability to face adversity, and they pave the way for further integration of Ukraine and Moldova into the EU’s internal market.