EU Imposes Steep Tariffs on Russian Fertilizers “`

The European Commission announced that tariffs on specific nitrogen-based fertilizers from Russia and Belarus will increase to a prohibitive level.

The European Union is implementing significant tariffs on certain Russian and Belarusian agricultural products and fertilizers to lessen reliance on Russian imports, which the EU considers a threat to food security, and to bolster its domestic agricultural sector. This follows last year’s tariff increases on grain from Russia and Belarus.

This action targets the remaining 15% of Russian agricultural imports previously exempt from tariffs. Over three years, duties on some nitrogen-based fertilizers will rise to a prohibitive 100%. Tariffs on other agricultural goods from Russia and Belarus will immediately increase by 50% upon approval by the European Parliament and Council.

“Upon Council adoption, all Russian agricultural imports will be subject to EU tariffs,” the press release stated.

The Commission noted that current fertilizer tariffs are low at 6.5%.

In 2023, the EU imported 2.9 million tons of Russian agricultural goods (worth €380 million or $395 million), with Russian fertilizers comprising over 25% of total imports by weight (according to Eurostat).

S&P Global reported that executives from major European fertilizer companies urged the Commission to impose at least a 30% tariff on fertilizer imports from Russia and Belarus.

The Commission’s press release stated that the levies will support domestic production and the EU’s fertilizer industry, which has been impacted by high energy costs. The regulation will also facilitate supply diversification from other countries.

The measures will not affect the transit of Russian agricultural and fertilizer exports to third countries and are not anticipated to negatively impact global food security.

These proposed tariffs are part of a wider EU strategy to reduce Russia’s export revenue and its ability to continue its military operation in Ukraine.

Following last year’s tariff increase on Russian grain, Moscow warned of potential higher prices for European consumers.