European Commission proposes new tariffs on remaining agricultural products and nitrogen-based fertilizers from Russia and Belarus
The European Commission has adopted a new proposal to impose tariffs on a range of agricultural products and nitrogen-based fertilisers imported from Russia and Belarus.
The proposed tariffs would cover the remaining 15% of agricultural imports from Russia that were not yet subject to increased duties in 2023. Once formally adopted by the European Council, all agricultural imports from Russia will face E.U. tariffs.
The European Commission emphasised that the move is designed to reduce vulnerabilities stemming from dependence on Russian and Belarusian imports, particularly fertilisers. The reliance on these imports has raised concerns about potential economic coercion by Russia, which could threaten E.U. food security.
Speaking on the occasion, the European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency – Maros Sefcovic, said, “These tariffs are carefully calibrated to serve multiple goals. We aim to weaken further Russia’s war economy, while reducing EU dependencies, supporting our industry, and preserving global food security. We will take every step necessary to protect our fertilisers industry and farmers.”
The tariffs will support the growth of domestic production and the E.U.’s fertiliser industry, which has suffered during the energy crisis. It will also allow for the diversification of supply from third countries. This will help ensure a steady fertiliser supply and, most importantly, ensure that fertilisers remain available for E.U. farmers at an affordable price. The proposal includes mitigating measures in case E.U. farmers see a substantial increase in fertiliser prices.
Beyond economic restructuring, the tariffs are also aimed at weakening Russian export revenues, potentially limiting Moscow’s ability to finance its ongoing war against Ukraine.
The new measures do not affect the transit of Russian and Belarusian agricultural and fertiliser exports to third countries. This is in line with the E.U.’s commitment to global food security, particularly for developing nations. The buying and selling operations of Russian agricultural products remain unchanged, as does their storage in E.U. customs warehouses, transportation on E.U. vessels, or the provision of insurance and financing services.
The European Parliament and the Council will now review the European Commission’s proposal under the Common Commercial Policy legal framework. Approval will require a qualified majority vote under Article 207 of the Treaty on the Functioning of the European Union (TFEU).
Since March 2014, the E.U. has progressively imposed restrictive measures (sanctions) against Russia, initially in response to the illegal annexation of Crimea and Sevastopol and the deliberate destabilisation of Ukraine. On 23 February 2022, the E.U. expanded the sanctions in response to the recognition of the non-government-controlled areas of the Donetsk and Luhansk ‘oblasts’ of Ukraine and the ordering of Russian armed forces into those areas. After 24 February 2022, in response to Russia’s military aggression against Ukraine, the E.U. massively expanded the sanctions. It added a significant number of individuals and organisations to the sanctions list and adopted unprecedented measures with the aim of weakening Russia’s economic base, depriving it of critical technologies and markets, and significantly curtailing its ability to wage war.
In parallel, the E.U. sanctions regime concerning Belarus has been expanded in response to the country’s involvement in Russia’s aggression against Ukraine. This is in addition to the sanctions aimed at Belarus that were already in place. This sanctions regime consists of a range of financial, economic and trade measures.
