Cranking up the Pressure: EU Ramping up Duties on Russian and Belarusian Agricultural Imports
EU imposes tariffs on Russian fertilizers and food products
Get ready for a shift in the agricultural trade game between the EU and Russia. After a tense meeting in Luxembourg, a majority of EU countries have agreed to hike duties on Russian and Belarusian agricultural products, including fertilizers and foodstuffs. This decision comes as an extension of the European Parliament's initial approval.
The looming duties will target a wide range of products such as sugar, vinegar, flour, animal feed, and nitrogen-based fertilizers like urea. With these new measures, all agricultural imports from Russia will be subject to tariffs in the future. Roughly 15% of all agricultural imports from Russia could be affected by these new tariffs by 2023, according to EU countries' estimates. However, imports are projected to surge in 2024 again.
The EU's move aims to disrupt Russia's financial lifeline, fueling its war of aggression against Ukraine. The gradual tariff increase on fertilizers will take place over three years, starting with a 6.5% duty, followed by duties of €40 to €45 per tonne, depending on the product type, from July 2025 to 2026. By 2028, the duties will escalate to between €315 and €430 per tonne.
Currently, the EU imports around a quarter of the affected fertilizers from Russia, resulting in a €1.3 billion annual spend. As Russia holds a substantial portion of the EU's fertilizer market, there's potential for Russia to wield its power in this area.
With these escalating tariffs, the EU hopes to reduce its reliance on these crucial imports and dissuade financial support to Russia's military campaigns in Ukraine. The EU Commission will monitor price increases and the potential damage to its internal market or agriculture sector, ready to take action to mitigate any negative impacts.
Sources: ntv.de, lar/dpa
- Russia
- EU
- Trade
- Fertilizers
- Tariffs
The European Union's increased tariffs on Russian agricultural imports, including fertilizers and foodstuffs, align with the EU's broader community and employment policies, aiming to disrupt Russia's financial support for its military campaigns. Meanwhile, political developments and general-news reporting suggest that these trade measures could significantly impact EU-Russia trade relations.
