You're reading: Germany criticizing Russia, Ukraine for grain export restrictions

Germany is criticizing Russia and Ukraine for grain export restrictions, while the two countries explain their measures by the extraordinary situation on the grain market due to heavy drought in 2010 and criticizes the European Union for hindering grain supplies from the CIS states.

The issue was discussed at the forum entitled "Development of Agricultural and Food Industries in Eastern Europe and Central Asia" held on January 21, 2011 in Berlin. The forum was held as a part of the International Green Week (IGW), an international exhibition for the food, agricultural, and horticultural industries.

"The situation on the global market does not justify the ban on grain export imposed by Russia and the ban causes serious alarms," Ilse Aigner, German Federal Minister of Food, Agriculture and Consumer Protection said at the forum.

She said that after Russia introduces grain export restrictions, the prices of grain on the global market jumped, speculations appeared and the emerging markets are suffering most of all.

Grain export restrictions in Russia are in effect from August 15, 2010 to July 1, 2011. Ukraine introduced grain export quotas until March 31, 2011.

"I don’t understand [Ukraine’s quotas] why one [company] receives quotas and another one not," Franz-Georg von Busse, Chairman of the Working Group on Agriculture, Committee on Eastern European Economic Relations.

Ukrainian Agricultural Policy and Food Minister Mykola Prysiazhniuk said at the forum that Ukraine is among top largest grain exporters in the world and is first in barley export.

"Despite the fact that there is a lack of grain in some countries, the European Union gives us a quota on grain supplies, which is only 1% of our export positions," he said, adding that this is a wrong position.

Prysiazhniuk said that on January 27, 2011, an event would be held in Ukraine, where representative of the World Bank, European Bank for Reconstruction and Development and grain traders would take part.

"We would look for forms of cooperation. We support a free grain market and would be achieve this in the near future," he said.

The Ukrainian minister added that the event is held not to make excuses to someone regarding certain decisions. The event targets the working out of joint actions.