Both Russia, Belarus hit with grain tariffs by EU

BRUSSELS — The European Commission wants to prevent Russia from using farm products as a tool to wreak havoc on the EU market and is moving to impose tariffs on grain imports from Russia and Belarus.

The tariffs are also aimed at denying Russia revenue because they will effectively suppress exports to the EU, the commission said.

Imports of cereals, oilseeds and derived products from Russia and its Belarus ally are just about 1% of the overall size of the EU market, with domestic suppliers providing the bulk.

But with angry farmers already worried by the increase of cheap Ukrainian imports, the EU fears that Russia will be encouraged to take advantage of the tense situation to further destabilize the 27-nation bloc.

“This shortfall in supply will be filled partially by EU’s domestic production and, therefore, benefit EU farmers who will be able to sell in the EU,” the commission said. “In addition, the shortfall is expected to be partially filled by imports from third countries which traditionally supply the EU market such as the U.S., Brazil, Ukraine, Serbia, or Argentina.”

EU imports of cereals, oilseeds and derived products from Russia — including wheat, sunflower meal and maize —were 4.2 million metric tons in 2023, worth $1.4 billion. In comparison, EU suppliers provide 300 million metric tons a year.

The tariffs are designed to be high enough to discourage Russian imports. Under the European Commission’s plan, which can be adopted quickly since it only requires around two-thirds of member countries to agree, the duties will either reach about $100 per metric ton or raise prices by at least 50%.