May 26, 2011

Ukraine to remove grain shipment limits

Ukraine will soon be ending all grain export restrictions after perceiving an increase in supplies, according to the country on Wednesday (May 25).

The ex-Soviet republic introduced quotas on wheat and other grain exports in October 2010 following a devastating drought that saw neighbour Russia impose a ban on all foreign shipments and whose extension is now under review.

Ukrainian Agricultural Minister Nikolai Prisyazhnyuk said the decision to lift all restrictions was reached by the government on Wednesday (May 25) and would come into effect in a matter of days.

"The government adopted a decision to repeal grain quotas," Prisyazhnyuk said.

"The decision will be released soon, get published and then, the export quotas will be lifted," he said.

The government initially imposed a 2.7 million tonnes quota on exports between mid-October and December 31, 2010 that was later partially extended.

Ukraine's grain harvest fell from 40 million tonnes last year from 46 million tonnes in 2009.

However, Prisyazhnyuk said Ukraine would export between 19 and 20 million tonnes of grain between now and the end of 2012.

The Russian grain export ban had been due to expire by year-end 2010 but was later renewed through this summer and may now be extended again.

Prime Minister Vladimir Putin said recently that Russia had sown 20% less grain than predicted this winter because of unfavourable weather and would need to substantially increase its sowing area in the spring.