€1 billion in funding has been pledged to bolster the EU-Ukraine Solidarity Lanes in a bid to increase global food security and support the economy of Ukraine.
In May, the European Commission established the trade corridors as part of its response to the Russian invasion of Ukraine.
As a result, more than 15 million tonnes of Ukrainian grain, oilseeds and agricultural products has been exported, by road, rail and through Black Sea and Danube ports.
A further 10 million tonnes of grain has been shipped from Ukraine as a result of the Black Sea Grain Initiative brokered by the United Nations (UN) and Turkey in August.
Prior to the war, Ukraine would have supplied around 45 million tonnes of grain annually to the global market.
The EU said that the corridors have become “the lifeline of Ukraine’s economy”, supplying €15 billion in income for farmers and businesses.
The lanes are also the only option for Ukraine to export non-agricultural goods and to import fuel and humanitarian supplies.
However, the EU said that the corridors are reaching their capacity and are plagued by bottlenecks and high logistics costs.
In a joint declaration today (Friday, November 11), the EU Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development, and the World Bank Group have pledged a further €1 billion to the initiative.
The EU Commission will allocate €250 million in grant aid to reduce waiting times and improve movements at border crossings.
A further €50 million is being earmarked to improve infrastructure and increase capacity on the lanes.
The EU said that it wants to “ensure liquidity for operators, funding of repairs and capacity increases”.
This will involve the European Investment Bank and the European Bank for Reconstruction and Development investing €300 million each to support the Solidarity Lanes.
The World Bank Group will also dedicate $100 million to repair railways and road damaged in the war.