EU targets Russian grain with new tariffs amid market concerns
The countries of the European Union made a final decision on Thursday to impose higher tariffs on grains, oilseeds, and derivative products imported from Russia and Belarus. The higher tariffs aim to halt the import of grains from these countries into the community area.
11:04 AM EDT, May 30, 2024
The European Union will increase import tariffs on grains, including wheat, corn, and rye, as well as oilseeds, derivative products, beet pulp, and dried peas from Russia and Belarus. The regulation will be effective July 1 of the current year.
Poland, the Czech Republic, and the Baltic countries appealed for higher tariffs to be imposed by the Union.
The EU made a decision. A blow to the Kremlin
Russia will be subject to higher tariff rates than other third countries. Grain importers from these countries currently pay no tariffs or shallow ones. The products covered by the regulation approved by EU countries will also lose access to EU tariff quotas.
"There is also evidence that the Russian Federation is currently illegally appropriating large quantities of grains and oilseeds produced in the Ukrainian territories it illegally occupies and directing these products to its export markets as allegedly Russian," argues the legislator in the regulation.
Russia's plans thwarted. The EU's decision stands
The regulation notes that grain imports have significantly increased since the Russian attack on Ukraine in 2022. Although Russia remains a relatively small supplier of grains to the EU market, considering that it is one of the world's largest producers, it could easily and quickly redirect significant amounts of grain supplies to the Union, which would lead to disruptions in the EU market.
The new regulations will not cover grains from Russia and Belarus that transit within the EU.
Belarus has been subject to tariffs to prevent the potential redirection of Russian grains through this country.
Tons of Russian vegetables are reaching European tables. An expert explains
Not only grain from Russia and Ukraine is reaching European tables. Russian and Belarusian cucumbers, tomatoes, potatoes, and onions are also arriving in the EU.
Roman Włodarz, president of the Silesian Chamber of Agriculture, in a conversation with Money.pl, reminds us that the import of vegetables has not been embargoed. "The ongoing import of vegetables from Russia has a simple reason. This results from the fact that - contrary to common belief - this country has no food embargo. Two years ago, after the outbreak of the war, the EU did not impose an embargo on everything," he says.
As Włodarz explains, vegetables from Russia and Belarus have been coming to Europe for years during the winter and spring periods. "These countries have significantly lower production costs in winter. The reason is low energy and fuel prices. This makes products like tomatoes and cucumbers from across the eastern border always competitive during this period," he explains.
