EU will impose tariffs on imports of Russian cereals

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BRUSSELS (AP) — The European Commission is about to impose tariffs on grain imports from Russia and Belarus to prevent Moscow from using agricultural products to cause chaos in the European Union (EU) market.

The tariffs are also intended to deny revenue to Russia because they will be effective in suppressing exports to the EU, the commission said.

Imports of cereals, oilseeds and derived products from Russia and its ally Belarus constitute just 1% of the overall EU market, as most suppliers are domestic.

But the anger of farmers, fearful of the rise of cheap imports from Ukraine, has the EU fearing that Russia will take advantage of the tense situation to destabilize the 27-nation bloc.

“This supply shortfall will be partially offset by EU domestic production, and will therefore benefit EU farmers who will be able to sell within the EU,” the commission detailed. “In addition, the deficit is expected to be partly offset by imports from countries that are traditional suppliers to the EU market, such as the United States, Brazil, Ukraine, Serbia or Argentina.”

European imports of cereals, oilseeds and derived products from Russia, such as wheat, corn and sunflower paste, totaled 4.2 million metric tons worth 1.3 billion euros in 2023. In comparison, European producers supply 300 million tons per year.

The tariffs will be high enough to discourage imports from Russia. Under the European Commission’s plan, which can be approved quickly as it only requires a two-thirds majority of member countries, they will be 95 euros per metric ton, which will raise prices by at least 50%.

In addition, Russia and Belarus will no longer have access to the WTO’s European grain quotas, which offer better tariff treatment for certain products.

“We propose to impose tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers,” said European Commission President Ursula von der Leyen.

“They will reduce Russia’s ability to exploit the EU for the benefit of its war machine. And we remain committed to preserving global food security, especially for developing countries,” he added.