EU plans to impose duties on grain imports from Russia and Belarus

The Financial Times has learned that the European Union is planning to impose duties on imports of Russian and Belarusian grain to reassure farmers and some member states. This will be the first restriction on food products from Russia since the start of the full-scale invasion of Ukraine. Source: European Pravda with reference to the Financial Times

Details: Sources familiar with the plans say that in the coming days, the European Commission will announce a EUR95 per tonne duty on grain from Russia and Belarus.

The sources report that this will lead to a price increase of at least 50%, which will destroy demand. Tariffs of 50% will also be imposed on oilseeds and their derived products. In 2023, imports from Russia of grains, oilseeds and their derivatives reached a record 4 million tonnes, accounting for 1% of total EU consumption.

The EU produces more than 300 million tonnes of grains and oilseeds per year and is a net exporter of the former, so it has no need for Russian and Belarusian imports. The EU representative noted that grain prices are at a four-year low, while Russia is "very competitive in the grain markets and exerts considerable pressure". The duty will be set at the maximum level allowed under WTO rules.

Russia could retaliate, but it has already banned most EU food imports, and many European companies in the sector have left the country in recent years. In February, Latvia imposed a unilateral ban on imports of many food products from Russia and Belarus, and Lithuania announced strict cargo inspections. On 8 March, Poland's Sejm passed a resolution calling for sanctions on imports of Russian and Belarusian food products.

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