Brussels suggests implementing high EU tariffs on Russian grain over concerns of potential market disruption

The European Commission has proposed a significant increase in tariffs on Russian grain entering the EU common market, including cereals and oilseeds. The proposed tariffs are intended to discourage purchases of Russian grain, as the EU fears that Russia, a major agricultural producer, could potentially flood the market with low-cost cereals, causing market turmoil. The proposed tariffs include a €95-per-tonne tariff on Russian maize and wheat, and a 50% ad valorem duty on other products. The measure is aimed at preventing Moscow from destabilizing the EU market and ensuring that stolen Ukrainian grain does not enter the EU market.

While the proposal is not technically a sanction, it has similar aims, such as depriving Moscow of revenue and preventing the sale of stolen Ukrainian grain in the EU. European companies would still be able to buy, sell, and store Russian and Belarussian grain, although it would no longer be economically sustainable due to the steep tariffs. The proposal, which still needs to be approved by member states, exempts cereals that transit through the EU to reach other countries, such as those in Northern Africa. The proposal was put forward after a meeting of EU leaders in Brussels, with Commission President Ursula von der Leyen citing the need to prevent Russian grain from destabilizing the EU market.

The conflict over Russian grain access to the EU market has become a contentious issue, particularly following the blockade of the Black Sea by Russian troops, which disrupted Ukraine’s traditional trade routes. The EU responded by setting up “solidarity lanes” for Ukrainian goods, exempting them from tariffs and quotas, but faced backlash from neighboring member states. Some countries imposed unilateral bans on Ukrainian foodstuffs, leading to ongoing disputes within the bloc. Despite efforts to find a solution, the EU has struggled to reach a lasting agreement. A recent deal to extend free-trade arrangements until 2025 was met with delays, highlighting ongoing tensions surrounding agricultural trade within the EU.

At a summit meeting, leaders from Latvia, Lithuania, and Ukraine called for stricter measures, including a total ban on Russian grain, which would require sanctions. Ukrainian President Zelenskyy raised concerns about Russian products entering the EU market despite Ukrainian goods facing obstruction. The proposal for increased tariffs on Russian grain is seen as a preventive measure to address these concerns and protect EU markets from potential disruptions. The EU aims to prevent Russia from using its agricultural exports to fund destabilizing actions and ensure that stolen Ukrainian grain does not find its way into the EU market.

Despite ongoing efforts by the EU to address the agricultural trade dispute, challenges remain in finding a lasting solution. The proposed tariffs on Russian grain represent a complex response to concerns about market stability and the potential for Russian interference in EU markets. As the proposal moves forward for approval by member states, the EU continues to grapple with balancing competing interests within the bloc and addressing the geopolitical implications of agricultural trade policies. The outcome of this proposal could have far-reaching impacts on EU-Russian relations and the future of agricultural trade in the region.