In response to concerns over potential destabilisation of the European market by Russia and to address grievances from Ukraine, the European Union has decided to impose tariffs on Russian grain imports.
The move aims to address issues raised by Ukrainian President Volodymyr Zelensky during the recent European summit and to alleviate frustrations among European farmers regarding unfair competition, particularly advocated by Poland and France.
President Zelensky highlighted the disparity between restrictions imposed on certain agricultural imports, exceeding average levels from 2022 and 2023, and the unrestricted access granted to Russian products in the European market.
His concerns echoed sentiments of Ukrainian grain being discarded on roads and railways amidst ongoing disputes, while Russian goods continue to flow into Europe, including products from Belarus.
Despite Russian agricultural products not being subject to the thirteen sanction packages previously issued by the EU due to their significance in the global market, the European Commission, with approval from member states, proposes tariffs on Russian and Belarusian grain products, such as wheat and maize.
These products, previously entering the EU mostly tariff-free, will now face a tariff of 95 euros per ton, approximately 50 percent of the current market price.
The rationale behind this decision lies in the Commission’s observation of a significant increase in grain production capacity in Russia, raising concerns of potential exploitation to destabilise European markets.
Commission President Ursula von der Leyen stressed that these measures aim to mitigate risks to European markets and farmers, further limiting Russia’s capacity to exploit the EU for its own interests, including funding its military activities.
Last year, Russian agricultural exports amounted to 1.3 billion euros, a revenue stream expected to be negatively impacted by the implementation of tariffs.
While some individual EU member states, like Latvia, have opted for a complete ban on Russian agricultural imports, the Commission refrains from such drastic measures, citing potential implications for global food safety.
The swift implementation of tariffs is anticipated, requiring approval from member states by qualified majority.
