Opinion on the proposal for a Regulation of the European Parliament and of the Council on establishing the Ukraine Facility (2023/0200 (COD))

28.8.2023

Mr David McAllister,

Chair

Committee on Foreign Affairs

Mr Johan Van Overtveldt

Chair

Committee on Budgets

IPOL-COM-AGRI D(2023) 30046

Subject: Opinion on the proposal for a Regulation of the European Parliament and of the Council on establishing the Ukraine Facility (2023/0200 (COD))

Dear Chairs,

Under the procedure referred to above, the Committee on Agriculture and Rural development (AGRI) has decided to submit an opinion under Rule 56 to your committees.

AGRI Coordinators, by written procedure, agreed on XX, on a basic proposal. This was put to vote on XX in Committee AGRI with the following outcome:

Members took note that this regulation directly affects the agricultural sector and rural development of Ukraine and indirectly affects the global agri-food chains, as Ukraine is one of the world’s top agricultural producers and exporters and plays a critical role in providing food commodities such as grains and oilseeds to the global market. These products are Ukraine’s most important exports, accounting for 41 percent of the country’s overall exports. In addition, more than 55 percent of Ukraine’s land area is arable land. Agriculture provides employment for 14 percent of Ukraine’s population. It is thus clear, that Ukraine’s recovery and reconstruction cannot be successful without a competitive and productive agriculture sector and dynamic rural development.

Therefore, AGRI committee wishes to make the following recommendations as regards the proposed Facility:

• Ukraine Plan

The Plan underpinning the new Facility that will be elaborated by the Ukrainian Government must include an adequate part on agriculture and rural development, outlining needs and requirements in order to deliver the crucial contribution of this sector to the recovery of the Ukrainian economy and society.

• Content of the Plan

The Plan must include sector-specific conditionality’s and a timeline, which are essential requirements to protect the financial interests of the Union, to provide clarity for public and private investments decisions as well as to ensure that the part on agriculture benefits the whole Ukrainian society and global food security. They must take into consideration the requirements of the National Strategic Plans as part of the Common Agriculture Policy (CAP) in order to allow for consistency with EU policies with a view to European integration of Ukraine. When assessing the Plan, the Commission must take proper account of its impact on the European agricultural sector and on EU farmers and not lead to their disadvantage.

• Governance

Where appropriate and possible, the Plan needs to correspond to the existing Governance structures in the CAP such as Management authorities and Paying Agencies in order to ensure that the appropriate methodology and processes are put into place with a view to EU integration.

• Standards

In line with the objectives of the Facility, the Plan must support the convergence towards EU standards notably in agriculture and food sector such as environmental and social requirements, geographical indications, food, feed and plant and phyto-sanitary safety as well as animal health and welfare requirements. Furthermore, it is crucial to ensure that Ukraine fully respect the EU social and environmental standards of production.

• Support

The Plan must also cover technical assistance and potential twinning arrangements, which are crucial for the agriculture sector to re-establish its full production capacity under the continuing difficult circumstances.

• Reforms

Finally, again in line with the stated objectives of the Facility, the plan must refer to the relevant structural and legislative reforms necessary for EU integration and eventual accession, including in the agricultural and food sector. In this context, the transition towards a green, digital and inclusive economy that is progressively aligned with EU rules and standards will also demand an active contribution from the agriculture sector.

As AGRI committee Chair, I would like to ask the AFET and BUDG committees to take due account of this opinion in the form of a letter in its reports on the proposed regulation to establish the Ukraine Facility.

Yours sincerely,

Norbert Lins