The European Commission proposed yesterday imposing tariffs on imports of grain from Russia and Belarus in an attempt to prevent Moscow and its ally from distorting EU markets and placate farmers who have protested for months over cheap imports.
The Commission said the tariffs were also designed to limit Russia’s ability to fund its war in Ukraine and to curb its sales of grain stolen from Ukraine.
The EU has expressly avoided imposing sanctions of Russian agricultural produce so as not to disturb global supplies. The Commission said that, with tariffs, transit of grain through the bloc to other countries would still be allowed as would financing, insurance, storage and transport of such shipments.
Traders said earlier this week that Russian and Belarusian shipments to the bloc are low, certainly relative to those from Ukraine, and that the imposition of tariffs was largely symbolic.
Russia exported 4.2 million metric tonnes of cereals, oilseeds and derived products to the EU in 2023, worth 1.3 billion euros ($1.4bn). A Commission official said this represented about 1 per cent of the EU market.
However, the Commission said there was a risk imports could increase, given Russian overall wheat exports had risen to 50m tonnes from the usual 35m tonnes.
The tariffs will be 95 euros ($102.76) per tonne for cereals and 50pc for oilseeds. They can be applied after approval from EU governments, which are likely to give assent within a few weeks.
The proposal came as European Union leaders debated the EU response to farmer complaints over environmental rules and the suspension of tariffs on agricultural imports from Ukraine since Russia’s invasion in 2022.
The latter has caused ructions in the bloc. Both France and Poland have criticised a provisional deal reached on Wednesday to extend tariff-free access for a further year with new curbs on some food products.
There is broader agreement on keeping out measures targeting Russia and Belarus.
On Wednesday, agriculture ministers of the Czech Republic, Estonia, Latvia, Lithuania and Poland wrote to the Commission urging it to act.