EU Commission, duties on cereals from Russia and Belarus increased –

The European Commission, as announced last night by President Ursula von der Leyen, has proposed to increase duties on imports into the EU of cereals, oilseeds and derived products from Russia and Belarus, including wheat, corn and sunflower flour (used for animal feed). The tariffs, although high enough to essentially suppress these imports into the EU, will not affect exports to third countries. The measures aim to prevent destabilization of the EU market through any future significant redirection of Russian cereal products to the EU market. The EU agricultural community, in particular, has expressed concern about this risk, which is high, given that Russia is the world’s largest exporter of cereals and has already demonstrated an inclination to use food exports as a geopolitical tool. The duties are also aimed at countering Russian exports of cereals obtained illegally and produced in the territories of Ukraine, some of which have been exported to the EU market, by deliberately labeling them as “Russian”, even if they are in fact Ukrainian. The tariffs proposed today will ensure that this illicit export method is no longer profitable.

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The Commission also intends to prevent Russia from using the proceeds of exports to the EU, both of Russian and illegally obtained Ukrainian cereal products, to finance the war of aggression against Kiev. Since Russia exported these products to the EU worth around 1.3 billion euros in 2023, according to the EU executive the duties «will cut another important source of profit for the Russian economy and for the from the Russian war”.

For President von der Leyen, «the imposition of duties on these Russian imports» aims to «mitigate the growing risk for our markets and our farmers. They will reduce Russia’s ability to exploit the EU to the advantage of the Russian war machine. «And we remain committed to preserving global food security, especially for developing countries. We are finding the right balance between supporting our economy and supporting agricultural communities. At the same time, we maintain our firm support for Ukraine.” The tariff increase also applies to Belarus, in light of Minsk’s close political and economic ties with Moscow. Furthermore, by including Belarus in the new measure, the EU will prevent Russia from using Belarus to evade the new tariffs and channel its goods to the EU market.