Brussels proposes ‘solidarity lanes’ to help Ukraine grain exports bypass Russian blockade

The European Commission is proposing “solidarity lanes” to help Ukraine export its agricultural produce overland after Russian forces blockaded Black Sea ports.

The action plan unveiled today urges market players to “urgently” transfer mobile grain loaders to border terminals and make additional vehicles available.

Ukrainian grain and other agricultural goods can no longer reach their destinations after Russia blockaded its ports and the situation is threatening global food security.

Under normal circumstances, 75% of Ukraine's grain production is exported, generating around 20% of national annual export revenues.

Before the war, Ukrainian Black Sea ports accounted for 90% of its export of grain and oilseeds. Around one third of the exports is destined to Europe, China and Africa, respectively.

Although member states have taken immediate efforts to ease border crossings between Ukraine and the EU, thousands of train wagons and lorries are waiting for clearance on the Ukrainian side. The average current waiting time for wagons is 16 days, while it is up to 30 days at some borders. More grain is still stored and held back in Ukrainian silos ready for export.

Among the challenges of using alternative trade routes are differing rail gauge widths. Ukrainian wagons are not compatible with most of the EU rail network, so most goods need to be transhipped to lorries or wagons that fit the EU standard gauge. This process is time-consuming and transhipment facilities along the borders are scarce.

The commission’s plan tries to ease these bottlenecks to create what are being termed as ‘solidarity lanes’ that are necessary to stave off a global food crisis.

The commission said it will be setting up a matchmaking logistics platform and ask member states to designate dedicated contact points to ease communication.

The Brussels executive is also calling for Ukrainian agricultural export shipments to be prioritised, and infrastructure managers should make rail slots available for these exports. 

To encourage EU transport operators to allow their vehicles to enter Ukraine, the Commission will investigate options for top-up financial guarantees.

National authorities should also apply maximum flexibility and ensure adequate staffing to accelerate procedures at border crossing points.

The commission will be assessing available storage capacity in the EU and coordinate with member states to help secure more capacity for temporary storage of Ukrainian exports.

Transport Commissioner Adina Vălean said 20 million tonnes of grains have to leave Ukraine in less than three months using the EU infrastructure.

With transport routes blocked or destroyed by Russia, 20M tonnes of grain are stuck in #Ukraine. We're establishing Solidarity Lanes to help 🇺🇦 move agricultural products & import goods it needs, from humanitarian aid to animal feed, enhancing global food security.#EUSolidarity

— European Commission 🇪🇺 (@EU_Commission) May 12, 2022

“This is a gigantesque challenge, so it is essential to coordinate and optimise the logistic chains, put in place new routes, and avoid, as much as possible, the bottlenecks,” she said. 

Vălean said the action plan addresses the emergency solutions but also medium and long time measures to better connect and integrate Ukraine's infrastructure with the EU one.

“For both short-term and long-term solutions, we will work with the Ukrainian authorities and in close collaboration, especially with the neighbouring member states, who spared no effort in helping during this crisis,” she insisted.