EU set to impose up to 50% tariff on Russian grain imports

In response to mounting concerns about potential destabilisation of the European market, the European Union (EU) is preparing to implement tariffs of up to 50 per centon grain imports from Russia.

This move, spearheaded by European Commission President Ursula von der Leyen, seeks to counter fears that Russia might flood the market with cheap wheat, thereby disrupting the stability of European grain prices.

The decision comes on the heels of Ukrainian President Volodymyr Zelensky's plea to EU leaders to take action against the "stolen" grain from occupied territories. Von der Leyen stressed on the necessity of these tariffs to mitigate risks to European markets and farmers, as Russia's actions could potentially benefit its war efforts.

“We propose the imposition of tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers. They will reduce Russia’s capacity to exploit the EU for the benefit of its war machine,” she said.

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Preventing market manipulation

The primary agendaof the proposed tariffs is to prevent the illegal dumping of grain by Russia, which could be used as a tool to exacerbate tensions with Ukraine.

European officials highlighted concerns about the potential redirection of Russian grain, potentially facilitated by Belarus, into the EU market, posing a threat to market stability.

Under the proposed measures, Russian grain, which currently enters the EU with minimal or no customs duties, would face a tariff of €95 ($102) per tonne. This tariff structure aims to regulate the influx of Russian grain into the European market, safeguarding against potential disruptions and maintaining fair competition for European farmers.

Zelensky's address to EU leaders also shed light onthe challenges faced by Ukraine, including the theft of Ukrainian grain and obstacles encountered by Ukrainian farmers in exporting their produce. He urged EU leaders to address these disparities to ensure fair treatment for Ukrainian agricultural products.

EU officials highlighted the significant increase in Russian grain exports to the EU, coupled with a surge in Russian grain production. From 2022 to 2023, Russian grain exports to the EU rose from 960,000 tonnes to 1.5 million tonnes, while production increased from 35 million tonnes to 50 million tonnes during the same period.

The proposal by the European Commission awaits final approval by the European Council, which could be expedited through a qualified majority vote. Von der Leyen justified the proposal, citing its role in preventing market destabilisation and halting Russia's exploitation of export revenues.

(With inputs from agencies)