EU to impose duties on Russian grain - FT
Kyiv • UNN
The EU is preparing to impose duties of 95 euros per ton on grain imports from Russia and Belarus, as well as duties on oilseeds and their products, to reassure farmers and some member states amid concerns that cheaper imports are undermining domestic markets.
The EU is preparing to impose duties on grain imports from Russia and Belarus to appease farmers and some member states, the first restriction on food since Russia's full-scale invasion of Ukraine, the Financial Times reports, according to UNN.
Details
Brussels, the newspaper writes, has long resisted pressure from Poland and the Baltic states to restrict Russian and Belarusian imports, arguing that such a move could undermine global food markets and harm developing countries.
"But, according to people familiar with the plans, the European Commission is expected to impose a €95-per-ton duty on grain from Russia and Belarus in the coming days. According to the people, this would lead to a price increase of at least 50 percent, which would destroy demand. The "50 percent" duty will also be imposed on oilseeds and their processed products," the newspaper notes.
The EU's imports from Russia of the products to be affected by the restrictions - grains, oilseeds and their derivatives - reached a record 4 million tons in 2023, accounting for 1 percent of total EU consumption.
In February, Latvia imposed a unilateral ban on imports of many food products from Russia and Belarus, and Lithuania announced strict cargo inspections.
EU Commissioner for Agriculture Janusz Wojciechowski, who had previously called Russian grain exports to Poland "insignificant," changed tactics last week during a visit to his native Poland, saying: "When Russia uses food as a weapon, we have to react.
The publication points out that in Poland, farmers are stepping up protests, claiming that cheaper imports from Ukraine (and increasingly from Russia) are undermining the domestic grain market.
The publication calls the protests, which include a blockade of the border with Ukraine, "an irritant in relations between Polish Prime Minister Donald Tusk and Ukrainian President Volodymyr Zelenskyy.
Earlier this month, Tusk said that Latvia had understandably imposed its own ban on Russian food exports, and warned that Poland might follow suit. But he said that he "would prefer that we, together, as the whole EU, decide on sanctions against Russia and Belarus on food and agricultural products.
On Friday, Commission President Ursula von der Leyen informed Tusk that she was "assessing the possibility of imposing restrictions on imports of agricultural products from Russia.
"EU Trade Commissioner Valdis Dombrovskis is likely to opt for duties rather than sanctions, as it would not require unanimous approval from capitals, as is the case with sanctions. This measure will allow products to transit through the EU on their way to Africa and Asia," the publication points out.
Moscow has already blamed the EU for causing disruptions on the global food market with its sanctions on Russian banks and energy companies. EU diplomats argue that it was Russia's attempt to blockade the Black Sea and attacks on Ukrainian grain storage facilities that led to the supply restrictions.
The EU produces more than 300 million tons of grains and oilseeds annually and is a net exporter of the former, so, as the publication points out, it does not need 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 significant pressure.
According to the people, the duty will be set at the maximum level allowed by WTO rules. russia could retaliate, but it has already banned most food imports to the EU, and many European companies in the sector have left the country in recent years, the newspaper writes.
