Republic of Moldova and Ukraine Negotiate Tariff Reductions for Grain Transit to the Port of Constanța

Ukraine Negotiates with the Republic of Moldova on Reducing Tariffs for Grain Transit to Romania

Ukraine is negotiating with the Republic of Moldova to facilitate the rail transportation of grain to Romania, amid intensified Russian attacks on Ukraine’s port infrastructure on the Black Sea. The plan envisages transporting grain through the Republic of Moldova to the port of Constanța, from where it would be further exported by sea.

Kyiv Requests a Reduction in Transit Tariffs

According to sources in Ukraine and the Republic of Moldova cited by Reuters, Ukrainian authorities are requesting a 50% reduction in the tariffs charged by the Moldovan Railways (CFM) for grain transportation. Chisinau is considering the proposal, while any potential reduction could be conditional on a guaranteed minimum volume of goods transported through the Republic of Moldova.

The negotiations currently focus on the period during which the mechanism would apply and the quantities of grain that could transit through the Republic of Moldova.

MIDR: The Reduction Would Be Temporary

The Ministry of Infrastructure and Regional Development (MIDR) has confirmed that it is examining Ukraine’s request and emphasized that any solution must generate economic benefits for both countries.

According to the ministry, the tariff reduction would not constitute the introduction of a permanent preferential tariff, but rather a temporary mechanism applicable within the framework of the Solidarity Lanes and aimed at providing a rapid response when attacks on Ukrainian infrastructure disrupt logistics routes.

MIDR considers that additional freight volumes could generate significant revenues for Moldovan Railways, even with a tariff reduction in place.

CFM Could Transport Millions of Tons

Oleg Tofilat, former director of Moldovan Railways, told Reuters that the Republic of Moldova’s railway infrastructure could potentially accommodate the transit of approximately 4.5 million tons of grain annually.

The Republic of Moldova has previously been used as a transit route for Ukrainian grain during 2022–2023, following the outbreak of Russia’s invasion and the disruption of Ukraine’s traditional maritime export routes.

Ukraine Prepares Export Volumes

Ukrainian authorities are currently consolidating information on the quantities of grain available for export that could be routed through the Republic of Moldova to the port of Constanța.

Ukraine’s Ministry of Agriculture estimates that the country’s grain exports in the current season could reach approximately 40 million tons, increasing the need to identify alternative logistics routes.

Chisinau Sees an Economic Opportunity

Prime Minister Vasile Tofan previously stated that the Republic of Moldova should not miss the opportunity to generate additional revenues from the transit of Ukrainian grain. He also rejected concerns that facilitating the transit could negatively affect the prices of grain produced by Moldovan farmers, arguing instead for capitalizing on the economic benefits of logistics cooperation with Ukraine.

Discussions between the two countries are ongoing, while the final parameters of the transit mechanism and the tariff reduction are to be agreed upon by both sides.