EU Imposes Tariffs On Russian Grain Imports To Stabilize Market

Polish farmers with national flags and angry slogans written on boards protest against European Union green policies that trim their production and against cheap grain and other food imports from Ukra

The European Commission is taking action to prevent Russia from using farm products as a tool to disrupt the EU market. The commission plans to impose tariffs on grain imports from Russia and Belarus in an effort to deny Russia revenue and suppress exports to the EU.

While imports of cereals, oilseeds, and derived products from Russia and Belarus make up only about 1% of the EU market, concerns have been raised about the potential impact on EU farmers. With tensions already high due to increased Ukrainian imports, the EU aims to prevent further destabilization by Russia.

The commission expects the shortfall in supply to be partially filled by the EU's domestic production, benefiting EU farmers. Additionally, imports from traditional suppliers such as the U.S., Brazil, Ukraine, Serbia, or Argentina are anticipated to help meet demand.

In 2023, EU imports of cereals, oilseeds, and derived products from Russia totaled 4.2 million metric tons, valued at 1.3 billion euros. In comparison, EU suppliers provide 300 million metric tons annually.

The proposed tariffs are designed to discourage Russian imports, with duties set to reach 95 euros per metric ton or increase prices by at least 50%. Russia and Belarus will also lose access to the EU's WTO quotas on grain.

European Commission President Ursula von der Leyen emphasized the need for these measures to protect EU markets and farmers while reducing Russia's ability to benefit from the EU for military purposes. The EU remains committed to global food security, especially for developing countries.

In response to the conflict in Ukraine, the EU has imposed sanctions on Russia, including measures targeting various sectors and individuals. While world food prices initially surged due to the conflict, they have since decreased from record highs in 2022.

The EU's tariffs on Russian grain are not expected to impact trade with third countries, ensuring global food security, particularly for developing nations. The tariffs may incentivize Russia to export to non-EU markets, including developing countries.