European Parliament supports increase in tariffs on agricultural products and fertilizers from Russia and Belarus
Members of the European Parliament in Brussels on Thursday, May 22, approved the European Commission’s initiative to significantly raise tariffs on a range of agricultural goods from Russia and Belarus, as well as to impose tariffs on fertilizers. The legislative act was adopted in the first reading: it was supported by 411 MEPs, 100 voted against, and 78 abstained. The approval of the EU Council is required for the final implementation of the decision.
This is reported by AgroReview
Changes in tariff policy and new tariffs
According to the adopted decision, tariffs on certain nitrogen fertilizers will gradually increase and reach about 100% over three years instead of the current 6.5%. This step will effectively halt the export of fertilizers from Russia and Belarus to the European Union. Additionally, in 2025-2026, additional fees of 40-45 euros per ton will apply, and by 2028, the tariff will increase to 430 euros per ton.
In addition to fertilizers, an additional tariff of 50% will be imposed on certain categories of agricultural products. These changes will affect products such as sugar, vinegar, flour, and animal feed.
Reducing dependence on Russian and Belarusian supplies
The goal of the new trade restrictions is to minimize the European market’s dependence on agricultural products and fertilizers coming from Russia and Belarus. The implementation of these measures is expected to significantly reduce the volumes of imports of the relevant goods to the EU, allowing for the development of domestic fertilizer production in Europe.
“The new tariffs do not affect Russian exports of agricultural products and fertilizers to third countries, which ‘aligns with the EU’s commitments to ensure global food security.’ This means that the buying and selling operations of Russian agricultural products remain unchanged, as do their storage in EU customs warehouses, transportation on its vessels, and the provision of insurance and financing services.”
European officials emphasized that the revenues from the export of fertilizers from Russia and Belarus directly finance the war against Ukraine.
It is worth noting that in 2023, Russia accounted for about 25% of all fertilizer imports to EU countries, which equals approximately 3.6 million tons and brought over 1.28 billion euros to the Russian budget. The tariff increases are aimed at overcoming this dependency.
The European Union has been considering the possibility of raising tariffs on agricultural and food products from Russia and Belarus, as well as on mineral fertilizers, since last year. At the same time, among Russia’s demands in peace negotiations was the lifting of sanctions on its producers and exporters of food, as well as on vessels involved in the trade of agricultural products and fertilizers.