Brussels proposes 50% tariffs on grain imports from Russia and Belarus

2024-03-22 11:02:40

Brussels move checker again against Russia. This time to limit their grain imports to European Unionreduce the possibility of using agriculture to finance their war machinery y destabilize he european market. Although at the moment there are no signs pointing in that direction, the European Comission proposed this Friday, as a “preventive” measure, to impose for the first time 50% tariffs on Russian grain importsoilseeds and products derived from Russia y Belarusincluding wheat, corn and sunflower meal.

“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 ability to exploit the EU for the benefit of its war machine. And we remain committed to preserving global food security , especially for developing countries. We are striking the right balance between supporting our economy and farming communities. At the same time, we maintain our unwavering support for Ukraine,” the company explained in a statement. president of the European Commission, Ursula von der Leyen.

The initiative, which will impose a 50% tariff surcharge with a customs rate of 95 euros per ton, has three main objectives: to avoid the destabilization of the European market through any future significant reorientation of Russian cereal products towards the EU market, a danger that the sector has warned about; cope with the Russian exports of cereals stolen a Ukraine, some of which, according to Brussels, have been illegally exported to the EU market deliberately mislabeled as ‘Russian’; and finally, prevent Moscow from using the proceeds from exports to the EU to finance the war.

1.3 billion in 2023

“Given that Russia exported about €1.3 billion worth of such products to the EU in 2023, these EU tariffs will eliminate another important source of profits for the Russian economy and, by extension, for the Russian war machine.” , holds Brussels. The increase in tariffs will also be applied to production from Belarus due to the country’s “close political and economic ties with Russia” and to prevent Vladimir Putin’s government from using that country to avoid tariffs. new tariffs and channel their products to the EU market.

The proposal, in any case, will only affect production whose destination is consumption in the UE. That is, not to the transit of cereals to third countries so it will not affect the food safety. The next step now will be its debate and approval in the Council where, as it is not strictly a sanction, it will only need to obtain a qualified majority of Member States. “The proposal is very simple. It is something that can go very quickly,” say community sources.

According to the data handled by the Commission, Russia exported 4.2 million tons of grain to the European Union in 2023 with a value of 1,300 million. Belarus meanwhile exported 610,000 tons worth 246 million. This is 1% of the entire European market and a volume that, although it does not currently have a significant impact, could have one in the future.

“Given that Russian production is very large and has increased significantly, we believe that they could redirect many of these exports,” they allege in Brussels about a possible Russian attempt to knock down European prices. “We have seen how destabilizing this can be. So it is a preventive measure. It is something we want to protect ourselves from so as not to be subject to this type of destabilization,” the same sources add.