Ukrainian agriculture faces serious challenges

Significance Agriculture is one of Ukraine’s leading export sectors. However, Russia’s invasion has reduced agricultural output, increased the cost of production and disrupted traditional trade routes across the Black Sea to markets in the Middle East and North Africa. With the war in its third year, agricultural activity is increasingly unprofitable, with output shrinking for key crops such as wheat. Impacts Trade through the Black Sea ‘humanitarian corridor’ will continue to grow. Russia’s state statistical agency Rosstat will include the four ‘new regions’ in its reports on agriculture in 2025. It is likely to cost Ukraine EUR330mn (USD358mn) annually if tariffs on Ukrainian food exports to the EU are triggered.