European Union is preparing to implement tariffs of up to 50 per cent on grain imports from Russia

In response to growing concerns over the potential destabilization of the European market, the European Union (EU) is gearing up to impose tariffs of up to 50 percent on grain imports originating from Russia. This initiative, spearheaded by European Commission President Ursula von der Leyen, aims to address apprehensions that Russia might inundate the market with inexpensive wheat, thereby jeopardizing the stability of European grain prices.

The decision comes shortly after Ukrainian President Volodymyr Zelensky appealed to EU leaders to take action against grain “stolen” from occupied territories. Von der Leyen underscored the importance of these tariffs in mitigating risks to European markets and farmers, cautioning that Russia’s actions could potentially bolster 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 stated.

The primary objective of the proposed tariffs is to prevent Russia from engaging in illegal dumping of grain, which could escalate tensions with Ukraine. European officials have expressed concerns about the possible diversion of Russian grain, potentially facilitated by Belarus, into the EU market, posing a threat to market stability.

Under the proposed measures, Russian grain, currently entering 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 ensuring fair competition for European farmers.

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

EU officials pointed out a 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 put forth by the European Commission awaits final approval by the European Council, which could be expedited through a qualified majority vote. Von der Leyen defended the proposal, citing its crucial role in preventing market destabilization and curbing Russia’s exploitation of export revenues.