For the first time in its history, Ukraine is preparing to challenge the EU's actions in arbitration established under the Association Agreement.

The dispute goes around actions of Poland's actions, allegedly discriminating Ukrainian exporters, explains Yuri Panchenko in the article "Breaking the Polish blockade: Kyiv disputes with the European Union".

The issue in question is Poland's established quota for freight traffic for Ukraine. Bilateral agreement with Warsaw sets a level of 200,000 permits per year with possibility to increase the quota by another 60,000 permits - enough to meet the needs of Ukraine's trade.

However, since September 2018 Warsaw have reduced the quota to 130,000 permits.

According to the former Deputy Minister of Infrastructure for European Integration Viktor Dovhan, Poland constantly raises new requirements to provide Ukraine with the initial quota. Simultaneously Warsaw refers to alleged corruption in Ukraine in distribution permits among Ukrainian freight companies. 

Deputy Minister of Infrastructure Mustafa-Masi Nayem says that in 2021 Ukraine has not received any additional permits from Poland, thus in October the quota was completely exhausted.

In September on margins of the economic forum in Karpacz, Poland, this issue was discussed by prime ministers and head of Polish government Mateusz Morawiecki promised to solve it, but in the reality the situation has only worsened since then. The Polish side have issued an ultimatum: no negotiations on quotas until Ukraine unblocked the important for Polish exports railway track closed for repairs. Losses for Ukraine due to the dispute with Poland are estimated at 500 million euro.

In 2022 they can be as high as 1 billion euro, says Ukrainian government.

Therefore, Ukraine has no other choice than to escalate the dispute from the bilateral to the EU level.

Read more in Ukrainian, in the article "Breaking the Polish blockade: Kyiv disputes with the European Union".