Saturday

26th May 2018

EU sets aside €125mn to stabilise food prices

  • EU farm commissioner Dan Ciolos has promised 'solidarity' with Russia-hit exporters (Photo: ec.europa.eu)

The European Commission has set aside €125 million more for food exporters hurt by the Russia ban.

It said in Brussels on Monday (18 August) the money will be available until the end of November for producers of tomatoes, carrots, white cabbage, peppers, cauliflowers, cucumbers, and gherkins, mushrooms, apples, pear, red fruits, table grapes, and kiwis.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

It noted in a statement that: “The markets for these products are in full season, with no storage option for most of them and no immediate alternative market available”.

A spokesman, Roger Waite, added that the move is designed to stop prices from falling to “crisis levels”.

The move comes after the commission earlier this month set aside up to €30 million for peaches and nectarines.

Member states’ agriculture experts will meet again in Brussels on Friday to see whether other sectors need assistance from a €420 million EU fund being used to cover the costs. Agriculture ministers will also meet on 5 September to assess the state of the markets.

Under the scheme, producers can divert up to 5 percent of output to be used as fertiliser or to be given away to schools and hospitals in return for EU compensation.

Russia imposed the ban on 6 August in retaliation for EU sanctions on its banks and energy firms over the Ukraine conflict.

Individual Russian consumers are allowed to bring back EU-made food, however. Food made in Belarus or Kazahstan using EU-supplied ingredients can also be exported to Russia, its deputy prime minister said on Monday.

News of the commission food aid came out the same day as statistics showing that EU exports to Russia were on a downward trend anyway, with sales down 12 percent between January and May compared to last year.

The sanctions war is likely to escalate if the conflict also gets worse.

The Ukrainian military on Monday said “many people have been killed, including women and children” when pro-Russia rebels hit a convoy of refugees in east Ukraine with rockets and mortars. But the pro-Russia rebels said Ukrainian forces bombed the civilians.

Russia relaxes EU food ban, counts costs

Russia has said its ban on EU food imports will cost it “hundreds of billions of rubles”, while taking several items off the blacklist.

Analysis

EU has no 'magic bullet' against US Iran sanctions

EU leaders in Sofia will discuss how they can protect the bloc's economic interests against US threats to sanction companies doing business in Iran. But their options are limited.

Opinion

EU budget must not fortify Europe at expense of peace

Given the European Commission new budget's heavy focus on migration, border management and security, many are asking whether the proposal will fortify Europe at the expense of its peace commitments.

News in Brief

  1. Italy set to pick eurosceptic finance minister
  2. UK foreign minister fooled by Russian pranksters
  3. Rajoy ally gets 33 years in jail for corruption
  4. Close race as polls open in Irish abortion referendum
  5. Gazprom accepts EU conditions on gas supplies
  6. Facebook tells MEPs: non-users are not profiled
  7. Commission proposes ending France deficit procedure
  8. UK households hit with Brexit income loss

Stakeholders' Highlights

  1. Counter BalanceEuropean Ombudsman requests more lending transparency from European Investment Bank
  2. Nordic Council of MinistersOECD Report: Gender Equality Boosts GDP Growth in Nordic Region
  3. Centre Maurits Coppieters“Peace and reconciliation is a process that takes decades” Dr. Anthony Soares on #Brexit and Northern Ireland
  4. Mission of China to the EUMEPs Positive on China’s New Measures of Opening Up
  5. Macedonian Human Rights MovementOld White Men are Destroying Macedonia by Romanticizing Greece
  6. Counter BalanceControversial EIB-Backed Project Under Fire at European Parliament
  7. Nordic Council of MinistersIncome Inequality Increasing in Nordic Countries
  8. European Jewish CongressEU Leaders to Cease Contact with Mahmoud Abbas Until He Apologizes for Antisemitic Comments
  9. International Partnership for Human RightsAnnual Report celebrates organization’s tenth anniversary
  10. Nordic Council of MinistersNordic Cooperation Needed on Green Exports and Funding
  11. Mission of China to the EUPremier Li Confirms China Will Continue to Open Up
  12. European Jewish CongressCalls on Brussels University to Revoke Decision to Honour Ken Loach