EU imposes tariffs on Russian grain
THE European Commission has reintroduced tariffs on some Russian and Belarusian agricultural imports in a bid to curb growing demand for them in some EU countries.
Farmer protests and falling cereal prices had put increased pressure on European governments to act.
Commission President Ursula von der Leyen received a nod of approval for the measures from EU leaders at a recent European Council summit.
At a press conference, she said the measures would ‘prevent Russian grain from destabilising the EU market in these products … stop Russia from using the revenues from the export of these goods to the European Union and … ensure that illegal Russian exports of stolen Ukrainian grain do not enter the EU market’.
Helped by good growing conditions, Russia has grown unprecedented amounts of wheat over the past two years and sold it cheaply on the world market.
This has reversed a boom in grain prices that followed Russia’s invasion of Ukraine, driving them down to prewar levels.
While the EU imports far less Russian grain than it does
Ukrainian grain, several EU countries have tapped into the cheap Russian produce, with Spain, Italy and France topping the list of buyers.
Market analysts say there is no evidence that Russian products have destabilised EU markets.
Some experts have gone as far as to claim the import of Russian grain to the EU will have virtually no impact as the amount arriving in the EU is so small and is not worth a lot of money.
The proposed tariff by the
European Commission stands at €95/t for grain imported from Russia and Belarus.
A senior EU official highlighted that Russia’s annual grain exports to the EU, nearly 5mt, only represent 1% of the EU’s total grain market. In 2023, these exports amounted to €1.3bn, which is less than 1% of Russia’s earnings from oil exports.
Russia has diversified its grain exports to other regions, particularly to countries in the Global South, termed as ‘friendly’ by
Russian authorities. President Vladimir Putin stated during a meeting with agricultural sector representatives earlier this year that Russian grain exports might reach up to 65mt in the agricultural year of 2023-2024.
Given that the sanctions have largely been exhausted, with no new product groups included in the thirteenth sanctions package adopted in December, the proposed grain tariffs are seen as little more than a symbolic gesture.