EU plans to raise tariffs on food and fertilizers from Russia and Belarus
EU plans to raise tariffs on food and fertilizers from Russia and Belarus (Getty Images)
The European Union is discussing raising duties on additional agricultural and food products, as well as fertilizers from Russia and Belarus, reports Bloomberg.
Several member states seeking to limit Moscow's revenues are calling on the bloc to impose large-scale duties on imports of agricultural and fishery products from Russia and Belarus to the EU in addition to the higher duties on grain set earlier this year.
Others urged caution, asking that the impact of any measures on European imports and food prices be assessed first, anonymous sources told Bloomberg.
Trade measures do not always require the support of all member states, unlike sanctions. The EU is still analyzing which products it can target. Any move on fertilizers is likely to be welcomed by the European industry, which has been lobbying for protection.
According to one source, the timing of the new duties is unclear, given the legal and political obstacles.
Russia is the world's largest fertilizer exporter with an 18% market share. While the industry is not under sanctions, it was forced to cut exports in the wake of Russia's invasion of Ukraine in 2022 due to logistical and payment issues. Since then, exports have recovered and this year are "expected to reach a record level of 2021," according to the Russian Association of Fertilizer Producers.
Agriculture, forestry, hunting, fishing, and fish farming accounted for about 2% of Russia's gross domestic product in the first half of this year.
New sanctions
Separately, the EU is working on a new package of sanctions, sources say. But a broad set of measures may have to be postponed until after Hungary's EU presidency, as Budapest blocks most actions related to Russia. Poland takes over the presidency in the new year.
According to the sources, this week several governments asked the European Commission to consider imposing narrower restrictions, such as listing more ships that violate sanctions and transport Russian oil and using the new EU regime to identify those spreading disinformation.
In May 2024, the EU Council approved duties on grains and oilseeds from Russia and Belarus. These tariffs are high enough to suppress such imports to the EU.
The decision came into force on July 1. The duties will be 95 euros per ton of grain and 50% for oilseeds. The products will not have access to EU tariff quotas.
The decision does not affect the transit of grains, oilseeds, and their products from Russia and Belarus to third countries.
