Ukrainian sugar producers set export records after switching from the EU to the global market

4 February 16:07

Ukraine demonstrates a significant increase in sugar exports in the 2024/25 marketing year. During the period from September-2024 to January-2025, 352 thousand tons were exported, which is 17% more than in the previous year. This was reported by the National Association of Sugar Producers of Ukraine “Ukrtsukor”, Komersant ukrainskyi reports.

At the same time, due to the restrictions on imports of Ukrainian sugar in the European Union, Ukrainian producers were forced to reorient to the world market. Previously, only 9.5% of the production went there, but this time all 352 thousand tons of sugar were exported.

The main importers of Ukrainian sugar were:

  • Turkey (19% of exports);
  • Libya
  • Somalia
  • Sri Lanka;
  • North Macedonia.

Since the beginning of 2025, exports to the EU have resumed with a quota of 107.3 thousand tons for the first 5 months of the year.

In 2024, Ukraine produced 1.8 million tons of sugar, with domestic consumption of 900 thousand tons per year, Ukrtsukr reported.

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“Facilitated trade regime” with the EU

The reorientation of Ukrainian sugar producers to the global market was forced, as the European Union is not keen on their products, despite the existence of a “simplified trade regime.”

The decision to allow the free import of Ukrainian goods into the EU was made by the EU at the beginning of the full-scale Russian invasion as a gesture of support for the Ukrainian economy and in response to the Russian naval blockade of Ukrainian ports. During the two years of its operation, the simplified regime has gained a lot of opponents in the European Union. In particular, the governments of Bulgaria, Poland, Hungary, Romania, and Slovakia demanded to restrict imports of Ukrainian products (later France joined this position). They claim that cheap agricultural products from Ukraine are swallowing up their markets.

Six major European farmers’ associations also protested strongly against Ukrainian products. Polish farmers have even organized a border blockade, not only with Ukraine but also with Germany.

Nevertheless, after fierce debate, the simplified trade regime with Ukraine was extended until June 5, 2025. However, at the request of these countries, it was severely restricted.

Thus, the provisions on duty-free trade were amended to include new “safeguards” to protect European producers.

In particular, the European Commission may take any measures it deems necessary if imports from Ukraine cause “significant disturbances” on the EU market or the markets of one or more EU Member States. In such a case, the European Commission may launch an “emergency brake” for particularly sensitive agricultural products. This list includes the following products:

  • poultry
  • eggs
  • sugar
  • oats
  • cereals
  • corn;
  • honey.

However, the European Commission has not only options but also responsibilities. If imports of these goods exceed the average import volumes recorded in the second half of 2021 and for the entirety of 2022 and 2023, customs tariffs must be restored within 14 days.

Thus, the EU has practically returned import quotas for many Ukrainian goods, albeit at a rather high level.

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Остафійчук Ярослав
Editor