European Commission has initiated an increase in duties on fertilizers and agricultural products from Russia and Belarus

The European Commission has initiated the imposition of duties on a number of agricultural products, as well as on some nitrogen fertilizers from Russia and Belarus.

This proposal is still to be considered by the European Parliament and the Council of the EU, and a qualified majority will be enough to pass the final decision, meaning that unanimous consent of all member states is not required, according to the European Commission’s website.

“The agricultural products that will be subject to the new duties account for 15% of agricultural imports from Russia in 2023, which have not yet been subject to increased duties. Once adopted by the Council, all imports of agricultural products from Russia will be subject to EU tariffs,” the statement said.

The European Commission said the aim of its legislative proposal is to reduce the EU’s dependence on imports from Russia and Belarus.

“Such imports, in particular of fertilizers, make the EU vulnerable to potential abuse by Russia and thus pose a risk to EU food security,” the European Commission said.

Likewise, the introduction of duties on Russian imported products will support the European fertilizer industry in the EU, which suffered during the energy crisis, and will also allow for diversification of imports of these products.

“This will help to ensure a constant supply of fertilizers and, most importantly, ensure the availability of fertilizers for EU farmers at an affordable price… The tariffs are expected to have a negative impact on Russian export revenues, thus affecting Russia’s ability to wage an aggressive war against Ukraine,” the European Commission explained.

At the same time, the proposed measures will not restrict the export of agricultural products and fertilizers from Russia and Belarus to third countries. Therefore, the proposed restrictions will not apply to the purchase and sale of Russian agricultural products or fertilizers, as well as the storage of such goods in EU customs warehouses, transportation on EU vessels, and the provision of insurance and financial services.

As reported, Russia is currently the world’s largest exporter of fertilizers with a share of about 18% of the global market. This sector of the Russian industry has not been affected by sanctions at all, but it faces certain problems due to disruptions in logistics and payments.

At the same time, the production and export of Russian fertilizers is growing, as local producers take advantage of low domestic prices for raw materials such as natural gas.

Earlier, Svein Tore Holseter, CEO of Yara International, one of the world’s largest producers of nitrogen fertilizers, said that Europe is gradually becoming dependent on Russian fertilizers, as it was with Russian gas. On the other hand, increasing fertilizer production allows Moscow to partially compensate for the loss of the European gas market.

Tags: Russia, EU, agricultural products, fertilizers, restrictions